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Q2.1 A factory is situated next to a dormitory for nurses who work night shifts. The factory produces 120 units of humanoid robots a day.

Q2.1 A factory is situated next to a dormitory for nurses who work night shifts. The factory produces 120 units of humanoid robots a day. The production process is rather noisy, and the nurses often complain that their sleep is disturbed. The following graph depicts the MPC and MSC of the robot factory production. The robot market is competitive and the market price is 340. Based on this information, which of the following statements is correct? Explain your answers.

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600 MSC 500 460 400 MPC Costs ($) 300 P = 340 260 200 100 0 0 10 20 30 40 50 60 70 80 90 100 110 120 130 140 Output

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