Indicates higher profit at the higher output
- Question: Why is profit negative when the output is zero?
- Output levels: q0 - q*
Indicates higher profit at the higher output while Profit is increasing
- Output level: q*
-Why is profit reduced while producing more or less than q*?
- Output levels beyond q*
* Thus, it can be said:
- Profits can be maximized when MC = MR. : when maximized are Profits