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The following are the Necessary and Sufficient Conditions for the Maximization of Economic Profits (EP), under Perfect Competition: Note: P* is Market Price in Eeuilibrium,
The following are the Necessary and Sufficient Conditions for the Maximization of Economic Profits (EP), under Perfect Competition: Note: P* is Market Price in Eeuilibrium, MC is Marginal Cost of Production, AVC is Average Total Cost, and EP are Economic Profits. Question 2 options: MR = MC & Decreasing MC P*= MC & Increasing MC MR= P* & ATC > P* MC=Min ATC & EP >0
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Microeconomics and Behavior
Authors: Robert Frank
9th edition
9780077723750, 78021693, 77723759, 978-0078021695
