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Scenario: A small firm manufactures maple baseball bats in two small production facilities, with the following marginal cost and average total cost equations: Plant 1:

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Scenario: A small firm manufactures maple baseball bats in two small production facilities, with the following marginal cost and average total cost equations: Plant 1: Marginal cost: MC1 = 10 + 2Q, Plant 1: Average total cost: ATC1 = 10 + Q. Plant 2: Marginal cost: MCz = 10 + 2Q, Plant 2: Average total cost: AT C2 = 10 + Q. Total Cost Total Cost $240 Marginal Cost = 10 + 20 524 Marginal Cost = 10 + 20 200 200 160 160 120 80 40 0 Firm Demand: MR = P = $100 AverageTolal Cost = 10 + O Firm Demand: 120 MR = P = $100 80 Average Total Cost = 10 + Q 40 0 0 1D 20 30 40 50 60 70 80 90100 Quantity 0 1O 20 30 4O 50 60 70 80 90100 Quantity 22) The owner of this firm insists that each bat-manufacturing facility produce the 22) same number of bats. Under this requirement, how many bats are produced at each facility? Explain your answer. A) 80 B) 90 C) 45 D) 40

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