Use the following to answer question:
-(Figure: The Profit-Maximizing Firm in the Short Run)Use Figure: The Profit-Maximizing Firm in the Short Run.The MC curve is represented by:

Question

Use the following to answer question: 
-(Figure: The Profit-Maximizing Firm in the Short Run)Use Figure: The Profit-Maximizing Firm in the Short Run.The MC curve is represented by:

Quizplus · Accepted Answer

The MC curve is represented by curve M in the figure. This is because the MC curve intersects with the MR curve at point E, which is the profit-maximizing level of output for the firm in the short run. Beyond this point, the MC curve increases at a faster rate than the MR curve, resulting in diminishing profits. Therefore, the firm will not produce any additional units of output beyond point E.

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