Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Suppose you have 2 factories. In the first, marginal cost is always $4. In the second, marginal cost is always $5. There are no fixed

Suppose you have 2 factories. In the first, marginal cost is always $4. In the second, marginal cost is always $5. There are no fixed costs, and no shipment costs for the finished product. What is correct? Question 1 options: You should always produce in both factories You should never produce in both factories You should produce in both factories if some customers are very far from the factory with $4 marginal costs None of the other answers is correct

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Economics Of The Environment Selected Readings

Authors: Robert Stavins

6th Edition

0393913406, 9780393913408

More Books

Students also viewed these Economics questions

Question

1. What will happen in the future

Answered: 1 week ago

Question

3. Avoid making mistakes when reaching our goals

Answered: 1 week ago