Question: Suppose a monopoly operates two plants, each producing the same product, and that for each quantity, the marginal cost in plant 1 is lower than

Suppose a monopoly operates two plants, each producing the same product, and that for each quantity, the marginal cost in plant 1 is lower than that in plant 2. If MR1 is the profit-maximizing marginal revenue in plant 1 and MR2 is the profit-maximizing marginal revenue in plant 2, then which of the following statements is correct?

i. MR1>MR2

ii. MR1<MR2

A.Only i is correct.

B.Only ii is correct.

C.Both i and ii are correct.

D.Neither i nor ii is correct.

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