A student examines the following graph and argues: I believe that a firm will want to produce

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A student examines the following graph and argues: "I believe that a firm will want to produce at Q1, not at Q2. At Q1, the distance between price and marginal cost is the greatest. Therefore, at Q1, the firm will be maximizing its profit." Briefly explain whether you agree with the student's argument.
Price MC and cost ATC D= MR Q, Q2 Quantity
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Economics

ISBN: 978-0134106243

6th edition

Authors: R. Glenn Hubbard

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