Figure: Short-Run Costs (Figure: Short-Run Costs) Look at the figure Short-Run Costs.At the given price, the most profitable level of output occurs at quantity:

Question

Figure: Short-Run Costs   (Figure: Short-Run Costs) Look at the figure Short-Run Costs.At the given price, the most profitable level of output occurs at quantity:

Quizplus · Accepted Answer

The most profitable level of output occurs at the point where marginal cost (MC) equals marginal revenue (MR). At quantity Qs, MC intersects with MR, which is the given price. Therefore, the best choice for the firm to maximize profits is producing at quantity S.

Figure: Short-Run Costs (Figure: Short-Run Costs) Look at the Figure