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The COO ofyour company needs to make several decisions in the nearfuture regarding production faci ties and stafng. FactoryI space needs to be leased. contracts

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The COO ofyour company needs to make several decisions in the nearfuture regarding production faci ties and stafng. FactoryI space needs to be leased. contracts with suppliers have to be negotiated. and workers must be hired and trained At the heart of it aH is the question what sort ofcapaCIty is going to be required 7 how much the rm should plan to produce and sell in the future. The company is one ofmany similar players in an industry where costs are related to output as follows C = 64 +120 + Q2. Can you tell the COD which output level would yield the largest prot margin by minimizing the average cost of production? -:j' :- 8

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