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-(Figure: The Profit-Maximizing Firm in the Short Run) Use Figure: The Profit-Maximizing Firm in the Short Run.If the market price is P₄,the firm will produce quantity _____ and _____ in the short run.

Question

Use the following to answer question:

-(Figure: The Profit-Maximizing Firm in the Short Run) Use Figure: The Profit-Maximizing Firm in the Short Run.If the market price is P₄,the firm will produce quantity _____ and _____ in the short run.

Quizplus · Accepted Answer

The firm will produce at the quantity where marginal cost equals the market price to maximize profit. If the market price allows the firm to cover variable and fixed costs, it will make a profit.

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