Explanation for the profit maximizing position of firm

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Reference no: EM131389239

Profit = TR = TC.

a) Why do firms maximize profit by setting MR = MC?

b) Why is the same MR = MC condition used when af irm experiences a loss?

c) What is an explanation for the profit maximizing position of a firm. Does it reflect a short or long run equilibrium?

Reference no: EM131389239

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