Should shift production and produce in massachusetts plant

Reference no: EM13902607

You produce widgets for sale in a perfectly com- petitive market at a market price of $10 per widget. Your widgets are manufactured in two plants, one in Massachusetts and the other in Connecticut. Because of labor problems in Connecticut, you are forced to raise wages there, so that marginal costs in that plant increase. In response to this, should you shift pro- duction and produce more in your Massachusetts plant?

Reference no: EM13902607

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