Question

Ghosh Babu has a manufacturing unit. The following graph gives the cost for various number of unit. Given the Profit = Revenue - Variable cost - Fixed cost. The fixed cost remains constant at Rs 50 up to 34 units after which it shoots up to Rs 100.

If at the most 40 unit can be manufactured, then what is the number of unit that can be manufactured to maximize profit per unit?

• A. 40
• B. 34
• C. 35
• D. 25

Answer 1

The correct option is B 34

Option (B) is the correct answer. Check the video for the approach.