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CAT 1998 | Question: 165

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Ghosh Babu has a manufacturing unit. The following graph gives the cost for a various number of units. Profit Revenue - Variable Cost - Fixed Cost. The fixed cost remains constant up to $34$ units after which additional investment is to be done in fixed assets. In any case, production can not exceed $50$ units.

If at the most 40 units can be manufactured then what is the number of units that can be manufactured to maximise profit?

  1. $40$
  2. $34$
  3. $35$ 
  4. $25$
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