Sweet Grams makes graham cracker snack packages. Sweet Grams is a multi- plant firm with two production facilities. The a table summarizes the total marginal cost of production at various output levels in the separate plants. Assume Sweet Grams is a perfectly competitive firm.
-Refer to the table above. If Sweet Grams is a perfectly competitive firm and the market price $1.00 per unit, what is the profit- maximizing quantity for Sweet Grams to produce at Plant 1?

Question

Quizplus · Accepted Answer

To find the profit-maximizing quantity for Sweet Grams to produce at Plant 1, we need to look at the marginal cost column and choose the quantity where marginal cost equals the market price of $1.00. At Plant 1, the marginal cost equals $1.00 at an output level of 24,500, which is the profit-maximizing quantity.

Sweet Grams Makes Graham Cracker Snack Packages