The short-run marginal and average cost curves for a firm are displayed below. When q= 2 and q= 6, the marginal cost is $4. When q = 6, the average cost is $6. Assume the firm has a fixed cost of $6 and they can sell each unit of output at a price of $4 (p = 4). What is the profit-maximizing level of output for the firm in the short-run? Profit-maximizing q = MC AC 6. 4 6. %24

The short-run marginal and average cost curves for a firm are displayed below. When q= 2 and q= 6, the marginal cost is $4. When q = 6, the average cost is $6. Assume the firm has a fixed cost of $6 and they can sell each unit of output at a price of $4 (p = 4). What is the profit-maximizing level of output for the firm in the short-run? Profit-maximizing q = MC AC 6. 4 6. %24

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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