Question

Suppose that Sandy owns a farm in North Carolina and Pat owns a farm in lowa, and Sandy's farm is generally more productive than Pan's. If both Sandy and Pat sell their com in the same market Sandy should produce the output at the marginal cost that is

A. equal to the marginal cost of Pars production
B. greater than the marginal cost of Pat's production
C. less than the marginal cost of Pat's production
D. equal to total revenue in the market

Answer 1

A. equal to the marginal cost of Pars production

Step-by-step explanation:

In the case when both sandy and pat sold their come in the similar market so here sandy should generated the result at the marginal cost that should be equivalent to the pat marginal cost of production

So as per the given situation, the option a is correct

And, the rest of the solutions are considered to be wrong