Figure 8.7.3
-Refer to Figure 8.7.3 above. At P = $80, the profit-maximizing output in the short run is:

Question

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The profit-maximizing output in the short run is where MR=MC. At P=$80, the corresponding MR is $80. From the graph, we can see that at $80, the MC curve intersects the AVC curve at Q=15 and the ATC curve at Q=39. Since the output level should cover at least the variable cost in the short run, the profit-maximizing output level is 39.

Figure 8.7.3 -Refer to Figure 8.7.3 Above. at P = $80, the $80