H1 shows, road bridges (D) that the PCF and the way the average total cost (ATC), the average variable cost (AVC) and the marginal cost (MC) of the business.PCF maximize profits in q *, because in that MC = P. If the company produced in the output level q1, in which MC < P then the business can increase profits by increasing productivity. The area S1 between q1 and q * is the lost profit because only the production in q1.
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