Profit maximization
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Khan Academy
Profit maximization
Learn how firms maximize profit by producing a quantity where marginal cost equals marginal revenue. In a competitive market, firms are price-takers, and marginal revenue is constant. Rational firms will produce more if marginal revenue is higher than marginal cost. Profit is maximized when the area of the rectangle formed by average total cost ...
Feb 19, 2019
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SOLVED: Question 4A profit-maximizing monopolist finds that if it remains open, the best output is 50 a week, but at this output it would make a loss. Under what circumstances should it shut down?a) If AR at this output is below SAC b) If AR at this output is below AVC c) If MR at this output is below SAC d) If MR at this output is below AVC
SOLVED: Question 4A profit-maximizing monopolist finds that if it remains open, the best output is 50 a week, but at this output it would make a loss. Under what circumstances should it shut down?a) If AR at this output is below SAC b) If AR at this output is below AVC c) If MR at this output is below SAC d) If MR at this output is below AVC
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SOLVED: Question 4A profit-maximizing monopolist finds that if it remains open, the best output is 50 a week, but at this output it would make a loss. Under what circumstances should it shut down?a) If AR at this output is below SAC b) If AR at this output is below AVC c) If MR at this output is below SAC d) If MR at this output is below AVC
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