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 $11 and they can sell each unit of output at a price of $3 (p = 3). In the short-run, what is the maximum profit this firm can earn? $ 5 3 2 5 MC AC q

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 $11 and they can sell each unit of output at a price of $3 (p = 3). In the short-run, what is the maximum profit this firm can earn? $ 5 3 2 5 MC AC q

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter22: Supply: The Costs Of Doing Business

Section: Chapter Questions

Problem 10E

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