(Answered) 1 explain why it makes sense for a company not to produce

Economics

1. Explain why it makes sense for a company not to produce more units than the quantity for which marginal cost is equal to the price.

2. Conversely, explain why it makes sense for a company not to produce less units than the quantity for which marginal cost is equal to the price.

3. Thirdly, explain why a firm would not want to produce a quantity for which the price is below the average cost (at least not for very long).

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Microeconomics, Economics

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