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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

Use the following to answer questions:
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 where marginal cost (MC) equals marginal revenue (MR), which is typically the price in perfect competition. In the figure, this occurs at quantity S.

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