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The figure below displays the short-run marginal cost and short-run average cost curves for a firm. Whenq=2 andq=5, the short-run marginal cost is $3. Whenq=5
The figure below displays the short-run marginal cost and short-run average cost curves for a firm. Whenq=2 andq=5, the short-run marginal cost is $3. Whenq=5 , the short-run average cost is $5. Assume the firm has a fixed cost of $5 and they can sell each unit of output at a price of $3 (p=3). What is the profit-maximizing level of output for the firm in the short-run?
Profit-maximizing= ?
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