1. Explain why it makes sense for a company not to produce more units than the quantity for which marginal cost is equal to the price.
2. Conversely, explain why it makes sense for a company not to produce less units than the quantity for which marginal cost is equal to the price.
3. Thirdly, explain why a firm would not want to produce a quantity for which the price is below the average cost (at least not for very long).