The equality of MR and MC is essential for profit maximization in all market structures because...
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The equality of MR and MC is essential for profit maximization in all market structures because if MR and MC are equal, any other output level will result in reduced profits. OMR is less than MC, producing more will increase profits. MR and MC are equal, economic profits will be zero. MR is greater than MC, producing more will lower profits. The equality of MR and MC is essential for profit maximization in all market structures because if MR and MC are equal, any other output level will result in reduced profits. OMR is less than MC, producing more will increase profits. MR and MC are equal, economic profits will be zero. MR is greater than MC, producing more will lower profits.
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Related Book For
Economics
ISBN: 978-0073375694
18th edition
Authors: Campbell R. McConnell, Stanley L. Brue, Sean M. Flynn
Posted Date:
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