Suppose that the figure below shows the short-run marginal cost (MC) and average cost (AC) curves...

 

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Suppose that the figure below shows the short-run marginal cost (MC) and average cost (AC) curves for Tesla - the largest manufacturer of electric vehicles, with costs on the vertical axis and the number of electric vehicles on the horizontal axis. Cost Q MC AC Quantity Comment on the following observations: (i) (ii) The more vehicles Tesla produces, the higher the MC and AC. Tesla should make Q vehicles to maximize its profit. Suppose that the figure below shows the short-run marginal cost (MC) and average cost (AC) curves for Tesla - the largest manufacturer of electric vehicles, with costs on the vertical axis and the number of electric vehicles on the horizontal axis. Cost Q MC AC Quantity Comment on the following observations: (i) (ii) The more vehicles Tesla produces, the higher the MC and AC. Tesla should make Q vehicles to maximize its profit.