CameraIcon

SearchIcon

MyQuestionIcon

1

You visited us 1 times! Enjoying our articles? Unlock Full Access!

Ogives

To maximize p...

Question

To maximize profit, the firm should produce ________.

A

15 units

No worries! We‘ve got your back. Try BYJU‘S free classes today!

B

30 units

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

C

35 units

No worries! We‘ve got your back. Try BYJU‘S free classes today!

D

50 units

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is C 30 units
Market price is Rs. 100 (i.e., P = AR = MR) and in the table MC is Rs. 100 at quantity 30. So to maximinse profits the firm should produce 30 units at which MC = MR, i.e., Rs. 100.
Quantity
(Q) Variable cost
(VC)
Fixed cost
(FC) Total cost
(TC) Average variable
cost (AVC)
Average total
cost (ATC) Marginal cost
(MC)
0 0 300 300 - - -
5 250 300 550 50 110 50
10 470 300 770 47 77 44
15 700 300 1000 46.67 66.67 46
20 980 300 1280 49 64 56
25 1350 300 1650 54 66 74
30 1850 300 2150 61.67 71.67 100
35 2520 300 2820 72 80.57 134
40 3400 300 3700 85 92.5 176
45 4530 300 4830 100.67 107.33 226
50 5950 300 6250 119 125 284

Suggest Corrections

thumbs-up

0

Similar questions

Q. A perfectly competitive firm has the following cost schedule

Output (units)	0	1	2	3	4	5	6	7	8	9	10
MC(Rs.)	-	11	10	9	8	7	6	7	10	13	19
TC(Rs.)	9	20	30	39	47	54	60	67	77	90	109

If the market price is Rs. 13, to maximize profits the firm should produce ___________.

Q. A company sells two different products, A and B. The two products are produced in a common production process, which has a total capacity of 500 man-hours. It takes 5 hours to produce a unit of A and 3 hours to produce a unit of B. The market has been surveyed and company officials feel that the maximum number of unit of A that can be sold is 70 and that for B is 125. If the profit is Rs 20 per unit for the product A and Rs 15 per unit for the product B, how many units of each product should be sold to maximize profit?

Q. The cost function for a product in a firm is

g i v e n b y {\frac{5}{q}}^{2},

where q is the amount of production. The firm can sell the product at a market price of ₹ 50 per unit. The number of units to be produced by the firm such that the profit is maximized is

Q. A company sells two different products A and B. The two products are produced in a common production process and are sold in two different markets. The production process has a total capacity of 45000 man-hours. It takes 5 hours to produce a unit of A and 3 hours to produce a unit of B. The market has been surveyed and company officials feel that the maximum number of units of A that can be sold is 7000 and that of B is 10,000. If the profit is Rs 60 per unit for the product A and Rs 40 per unit for the product B, how many units of each product should be sold to maximize profit? Formulate the problem as LPP.

Q. A company produces two types of goods, A and B, that require gold and silver. Each unit of type A requires 3 gm of silver and 1 gm of gold while that of type B requires 1 gm of silver and 2 gm of gold. The company can produce 9 gm of silver and 8 gm of gold. If each unit of type A brings a profit of Rs 40 and that of type B Rs 50, find the number of units of each type that the company should produce to maximize the profit. What is the maximum profit?

View More

Join BYJU'S Learning Program

similar_icon

Related Videos

lock

Diagrammatic Presentation

STATISTICS

Watch in App

explore_more_icon

Explore more

Standard XI Statistics

Join BYJU'S Learning Program

CrossIcon