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The production of a fixed amount of output should be allocated between two production activities so that the marginal cost is the same in each
The production of a fixed amount of output should be allocated between two production activities so that the marginal cost is the same in each activity because otherwise overall costs can be reduced by reallocating the good with multiple choice lower MC to the production of the good with higher MC. lower TC to the production of the good with higher TC. higher TC to the production of the good with lower TC. higher MC to the production of the good with lower MC
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