For the pizza seller whose marginal, average variable, and average total cost curves are shown in the accompanying diagram, what is the profit-maximizing level of output and how much profit will this producer earn if the price of pizza is $2.50 per slice?
Cost
$3.30
$2.50
$1.40
$0.70
280 370 800
MC
ATC
AVC
Price
(market
)
output