Graphical Analysis, continued From figure 5.1, as usual, the steel firm maximizes profits at MB=MPC. This quantity is denoted as Q, in the figure Social welfare is maximized at B=Msc Which is denoted as Q in the figure8 Graphical Analysis, continued • From figure 5.1, as usual, the steel firm maximizes profits at MB=MPC. This quantity is denoted as Q1 in the figure. • Social welfare is maximized at MB=MSC, which is denoted as Q* in the figure