Suppose a profit-maximising firm is actually ends up minimising losses. This task is accomplished by producing the quantity at which price is equal to the:

Question

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The firm will minimise its losses by producing at the quantity where price is equal to marginal cost. This is because producing any less would result in lost potential revenue, while producing any more would result in additional costs exceeding the revenue generated. Therefore, producing at marginal cost minimises the losses for the firm.

Suppose a Profit-Maximising Firm Is Actually Ends Up Minimising Losses