The layperson says that a firm maximizes profits when total revenue (TR) minus total cost (TC) is
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The layperson says that a firm maximizes profits when total revenue (TR) minus total cost (TC) is as large as possible and positive. The economist says that a firm maximizes profits when it produces the level of output at which MR5MC. Explain how the two ways of looking at profit maximization are consistent.
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As long as MR MCfor example MR 56 and MC 54the f...View the full answer
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