Suppose that a price taker has a marginal cost of $8 when producing 550 units of output.In order for this to be the point of profit maximization,

Name: Suppose that a price taker has a marginal cost of $8 when producing 550 units of output.In order for this to be the point of profit maximization,
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Question

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In order to maximize profit, the price must be set equal to the marginal cost of production. In this case, the marginal cost is $8, so the price must also be $8 for profit maximization.

Suppose That a Price Taker Has a Marginal Cost of $8