The following tables show a small firm’s long-run average cost of manufacturing a good at two different plants: able1: Plant 1 Quantity Total cost Average cost Marginal cost 1 33 2 89 3 147 4 207 5 270 6 338 Table2: Plant 2 Quantity Total cost Marginal cost Average cost 1 32 2 64 3 102 4 142 5 187 6 239 7 297 8 357 9 419 a. Complete the third and fourth columns of each table. b. Suppose the price of the good is $60. How many units should the firm produce in each plant to maximize profit? c. Compute and compare the profits the firm can make if it produces the optimal quantity at each plant.
The following tables show a small firm’s long-run average cost of manufacturing a good at two different
plants:
able1: Plant 1
Quantity Total cost Average cost Marginal cost
1 33
2 89
3 147
4 207
5 270
6 338
Table2: Plant 2
Quantity Total cost Marginal cost Average cost
1 32
2 64
3 102
4 142
5 187
6 239
7 297
8 357
9 419
a. Complete the third and fourth columns of each table.
b. Suppose the price of the good is $60. How many units should the firm produce in each plant to
maximize profit?
c. Compute and compare the profits the firm can make if it produces the optimal quantity at each
plant.
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