Every firm wants to maximize profit, no matter which market structure the firm operates in. Profit is always some function of the firm's output. Finding the highest profit then boils down to finding the maximum of a function. This can be achieved by: You can respond once Setting MC equal to P Setting MR equal to a-2bQ and then equal to MC Finding the slope of the profit function Finding where the slope of the profit function is equal to zero

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To find the highest profit in economics firms often use marginal cost MC and marginal revenue MR to ... View the full answer