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Allushta [10]
2 years ago
11

How does a seller maximize profit at marginal revenue being equal to marginal cost?

History
1 answer:
atroni [7]2 years ago
7 0

Answer:

Firms will produce up until the point that marginal cost equals marginal revenue. This strategy is based on the fact that the total profit reaches its maximum point where marginal revenue equals marginal profit. ... If MR<MC, then the firm should produce less: it is making a loss on each additional product it sells.

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