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 total quantity for Just Juice to produce?

Question

Quizplus · Accepted Answer

To find the profit-maximizing total quantity, we need to look for the output level where marginal revenue equals marginal cost. Just Juice has two plants, so we need to sum the output levels of both plants. The total quantity with the highest profit is 955 bottles (400 + 555), where the marginal cost is $4.50 and the marginal revenue is $5.00 (the last row where MR = MC). Therefore, the best choice is D.

Just Juice Produces Whole Fruit Juice That It Sells in Single