Question: Explain why MR=MC is the profit-maximizing decision. Why MR > MC and MR < MC cannot be profit-maximizing decisions? Briefly explain why the following statement

Explain why MR=MC is the profit-maximizing decision.

Why MR > MC and MR < MC cannot be profit-maximizing decisions?

Briefly explain why the following statement is incorrect, "Maximum total profits can be found by looking for that output for which profit per unit (that is, price minus average cost) is as large as possible."

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