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Exhibit 12-2 Short Run Morginal Cost Average $105---- Total $88------ Cost Average Variable $55 - Cost 460 1675 600 Refer to
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the firm produces at P=MC to maximize profit if P>AVC and the output level is 600 units where the firm already producing means the firm is producing at the profit-maximizing quantity

the P>AVC at the output from the graph.

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