Global Corp. sells its output at the market price of $7 per unit. Each plant has...

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Global Corp. sells its output at the market price of $7 per unit. Each plant has...

Global Corp. sells its output at the market price of $7 per unit. Each plant has the costs shown below:

Units of Output	Total Cost ($)
0	10
1	12
2	16
3	22
4	30
5	40
6	52
7	66

How many units of output should each plant produce?

Please specify your answer as an integer.

business economics

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Answer 1

Answer #1

Ans) 3 units of output should be produced

At Profit maximization, Price is greater or equal to MC

Marginal cost (MC) = 22 - 16 = 6

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Answer 2

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