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Price (dollars per pound) 5 MC ATC Market prio D-MR 2 1 0 10 20 30 40 Quantity (thousands of pounds) Figure 12-6 shows the de
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Answer #1

The equilibrium is at the point where the price = marginal cost (MC), and the intersection of price and MC curve takes place on the rising portion of the MC curve. So, on the basis of these two criteria the profit maximizing level of output is indicated by point d.

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