Consider three firms, A, B and C, all producing kilos of potatoes (per year). The diagrams for the marginal cost curvesfor each of the three firms are shown.Suppose that the total quantity for the market is 1200 kilos of potatoes. Keeping total output unchanged, what level ofoutput should each firm be producing such that the industry is productively efficient? Assume all the points are on themarginal cost curve.O A. Firm A: 400 kilos, Firm B: 400 kilos, Firm C: 400 kilosB.Firm A: 550 kilos, Firm B: 650 kilos, Firm C: 0 kilosO C.Firm A: 150 kilos, Firm B: 400 kilos, Firm C: 650 kilosO D.FirmA: 400 kilos, Firm B: 400 kilos, Firm C: 150 kilosO E. Firm A: 400 kilos, Firm B: 650 kilos, Firm C: 150 kilosCost ($)Cost ($)Cost ($)2+2+150150Firm A400Quantity of potatoesFirm B550400Quantity of potatoesFirm C400Quantity of potatoes650650MCAMC₂750MCCQ✓ ONQQ

Ans. ) Below is the answer to the question...Explanation:Ans. ) Given that there are three firms…

Answered: Consider three firms, A, B and C, all…

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter2: Mathematics For Microeconomics

Section: Chapter Questions

Problem 2.8P

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