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In Figure 10.1 the profit maximizing level of output for a perfectly competitive firm is: Figure 10.1 Graph-There are three curves on the graph; MC
In Figure 10.1 the profit maximizing level of output for a perfectly competitive firm is: Figure 10.1 Graph-There are three curves on the graph; MC and AC, and horizontal demand curve D=P=AR=MR; the demand curve is horizontal at P1=2; AC dips below the demand curve; quantity Q1 occurs where the downward sloping portion of AC intersects the demand curve; quantity Q2 occurs where MC intersects AC at the lowest point of AC; quantity Q3 occurs where MC intersects the demand curve; quantity Q4 occurs where the upward sloping portion of AC intersects the demand curve In Figure 10.1 the profit maximizing level of output for a perfectly competitive firm is: Q1. Q2. Q3. Q4
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