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The figure below displays the short-run marginal cost and short-run average cost curves for a firm. When q = 2 and q = 6, the

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The figure below displays the short-run marginal cost and short-run average cost curves for a firm. When q = 2 and q = 6, the short-run marginal cost is $4. When q = 6, the short-run average cost is $6. Assume the firm has a fixed cost of $6 and they can sell each unit of output at a price of $4( p = 4). What is the profit-maximizing level of output for the firm in the short-run? Profit-maximizing q = 7 $ MC AC 6 4 2 6 q MAY 26

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