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Negative profit
Indicates higher profit at the higher output
- Question: Why is profit negative when the output is zero?
- Output levels: q0 - q*
Indicates higher profit at the higher output while Profit is increasing
- Output level: q*
-Why is profit reduced while producing more or less than q*?
- Output levels beyond q*
* Thus, it can be said:
- Profits can be maximized when MC = MR. : when maximized are Profits
if coast of good A fall by Rs.1 & coast of good B increases by 1 Rs. what will be the effect on budget line
causes of abnormal supply curve
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