Question

Jaden's profit is maximized when they produce a total of _______ cardigans. At this quantity, the marginal cost of the final cardigan that produces _______ in the amount _______. Then the price for each cardigan is _______.

Answer 1

The profit-maximizing quantity for Jaden's cardigan production is 4 units, with a marginal cost of $184 and a price of $72 per cardigan.

Step-by-step explanation:

To find the profit-maximizing quantity, we need to compare the marginal costs and the marginal revenue for each output level. In this case, the fixed costs of production are $100, and the variable costs depend on the number of units produced.

By analyzing the data provided in the form of a table, we can determine that the profit-maximizing quantity is 4 units. At this quantity, the marginal cost of the final cardigan is $184, and the price for each cardigan is $72.