Just Juice produces whole fruit juice that it sells in single bottles. Just Juice is a multi- plant firm with market power. The abov summarizes the total marginal cost of production at various output levels in Just Juice's two plants with the corresponding marginal revenue (dollars per bottle)and market demand (price per bottle).
-Refer to the table above. What is the profit- maximizing quantity for Just Juice to produce at Plant 2?
A)530
B)425
C)450
D)600

Question

Just Juice produces whole fruit juice that it sells in single bottles. Just Juice is a multi- plant firm with market power. The abov summarizes the total marginal cost of production at various output levels in Just Juice's two plants with the corresponding marginal revenue (dollars per bottle)and market demand (price per bottle).
-Refer to the table above. What is the profit- maximizing quantity for Just Juice to produce at Plant 2?
A)530 
B)425 
C)450 
D)600

Quizplus · Accepted Answer

The profit-maximizing quantity is where marginal cost equals marginal revenue. At Plant 2, marginal cost is $1.50 and marginal revenue is $2.00. Therefore, the profit-maximizing quantity is 530 units.

Just Juice Produces Whole Fruit Juice That It Sells in Single