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Suppose you are a consultant to a firm that has two production facilities (A and B), both of which produce the same product. An accountant provides you with the following cost data:
QA,000 QB,000
TCA=$900,000 TCB=$570,000
ATCA=$22.50 ATCB=$19.00
MCA=$8.00 MCB=$12.00
Given these data, how, if at all, would you recommend reallocating production between these two plants? Briefly explain why.
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