Asked by

Diante Perry
on Nov 04, 2024

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If a profit-maximizing firm is currently producing output where MR = MC in the short run, it should

A) increase output.
B) decrease output.
C) not change output.
D) shut down.

Profit-Maximizing

Profit-Maximizing refers to the point at which a firm achieves the highest possible profit through the manipulation of production or pricing strategies.

MR = MC

A condition in economics where marginal revenue equals marginal cost, often considered the point of profit maximization for firms in perfectly competitive markets.

Short Run

A period in which at least one factor of production is fixed, limiting the ability of firms to adjust to market changes.

  • Elucidate the concept of maximizing profits and how it is applied within the context of perfectly competitive markets.
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MA
Mohammed Al ZamilNov 07, 2024
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