21. If the firm is a profit maximizer it will produce exactly 6 units of output if the price equal to or greater than the Marginal Cost of the 6th unit, but below the marginal cost of the 7th or above units.

   If we examine the costs given to the right we see that the Marginal Cost of the 6th unit is $35, so the price must be at least that high. The Marginal Cost of the 7th unit is $40 so the price can't be as high as $40 or the firm will produce more than 6 units.

Gross Generalizations
Output Total Cost MC
0 25.00 --
1 35.00 35.00
2 50.00 15.00
3 70.00 20.00
4 95.00 25.00
5 125.00 30.00
6 160.00 35.00
7 200.00 40.00

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