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CAT 1998 | Question: 166

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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 the production cannot exceed 45 units then what is the number of units than can maximise profit?

  1. $40$ 
  2. $34$ 
  3. $45$
  4. $35$

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