Pofit tr tca why do firms maximize profit by setting mr , Ask an Expert

Economics

Profit = TR = TC.

a) Why do firms maximize profit by setting MR = MC?

b) Why is the same MR = MC condition used when af irm experiences a loss?

c) What is an explanation for the profit maximizing position of a firm. Does it reflect a short or long run equilibrium?

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M92199059

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