TheCATExam
Sign in

CAT 1998 — DILR Question 34

Bar GraphsEasy
Passage / Data

Direction: Answer the questions based on the following information.

Ghosh Babu has a manufacturing unit. The following graph gives the cost for various number of units. Given: 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 cannot exceed 50 units.

If the production cannot exceed 45 units, then what is the number of units that can maximise profit per unit?

Answer & solution

  • A

    40

  • 34

  • C

    45

  • D

    35

Solution

Let us verify for the given options.

​​​​​​​

Extending the above table for 45 units, we get

​​​​​​​

Thus, it can be figured out that still he has to manufacture 34 units.

CAT 1998 DILR Q34: If the production cannot exceed 45 units, then what is the number of units that can maximise profit per unit? — Solution | TheCATExam