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Homework answers / question archive / The figure below displays the short-run marginal cost and short-run average cost curves for a firm
The figure below displays the short-run marginal cost and short-run average cost curves for a firm. When q = 2 and q = 5, the short-run marginal cost is $3. When q=5, the short-run average cost is $5. Assume the firm has a fixed cost of $5 and they can sell each unit of output at a price of $3 (p = 3). What is the profit- maximizing level of output for the firm in the short-run? Profit-maximizing 9 = MC AC 5 3 2 5
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