In December of 2019, the price for airline travel was the P₀, the price you depicted in your answer to Question 1.

• Using the graphs of AVC, ATC, and MC, show this original price, P₀, on this graph with$on the vertical axis and lower-caseq(firm output) on the horizontal axis. You should assume that this December 2019 priceP₀is higher than the minimum point of the ATC you drew on your graph.
• Graphically indicate the profit maximizing outputq₀for this typical firm and explain how you determined this output.
• Why does it not make sense for the firm to produce either more or less than the profit maximizing outputq₀that you've determined? Please explain.