The Firm's Short-Run Supply decision o Each firm is a profit-maximizer and in a short -run cQ: How does each firm choose its output level? ◆A: By solving maxIS (y)=py -Cs (y). y≥0The Firm’s Short-Run Supply Decision ◆Each firm is a profit-maximizer and in a short-run. ◆Q: How does each firm choose its output level? ◆A: By solving max ( ) ( ). y s y py s c y  = − 0 