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A firm will maximize its profits by hiring factors up to the point at which:
a. MR = MC, if the firm is a monopolist, monopolistic competitor, or oligopolist.
b. P = MC, if the firm is a perfect competitor.
c. MRP = MFC, if the firm is a product price taker.
d. VMP = MFC, if the firm is a product price searcher.
e. a and b
Suppose each monopolist is allowed to sell both domestically and export the good. At what price will the good be traded? What quantity will each firm sell domestically and what quantity will it export?
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