3. The layperson says that a firm maximizes profits when total revenue (TR ) minus total cost...

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3. 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 MR  MC. Explain how the two ways of looking at profit maximization are consistent.

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Microeconomics

ISBN: 9780324785494

9th Edition

Authors: Roger A. Arnold

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