Expand If Profit Margin Is Positive? Consider a firm that uses the following rule to decide how much output to produce: If the profit margin (price minus short-run average total cost) is positive, the...

Expand If Profit Margin Is Positive? Consider a firm that uses the following rule to decide how much output to produce: If the profit margin (price minus short-run average total cost) is positive, the firm will produce more output. Use the firm’s short-run cost curves to evaluate this approach. Draw the firm’s short-run supply curve and compare it to the shortrun supply curve of a profit-maximizing firm.