$2\mathrm{.}1$ A firm has three different production facilities, all

of which produce the same product. While review$-$

ing the firm's cost data, Jasmin, a manager, discov$-$

ers that one of the plants has a higher average cost

than the other plants and suggests closing this plant.

Another manager, Joshua, notes that the high$-$cost

plant has high fixed costs but that the marginal cost

in this plant is lower than in the other plants. He says

that the high$-$cost plant should not be shut down but

should expand its operations. Who is right?