Price-searcher's profit-maximizing output and price 6th unit: worth ≈$16, costs only ≈$12 — goes unmade profit-max: MR = MC (read price up to demand) $16 $15 $12 $11 0 5 6 Output Price (dollars) D (Average Revenue) Marginal Revenue Marginal Cost Average Cost $16 profit/unit = $1 5 At Q = 5: price $16, average cost $15, MR = MC ≈ $11. MR = MC — profit-maximizing output; price is read up to demand at $16, for $1 profit per unit.