Economic profits are maximized at the point at which

Name: Economic profits are maximized at the point at which
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Economic profits are maximized where the marginal revenue (MR) equals marginal cost (MC). At this point, a firm is producing at the level where the cost of producing one more unit (MC) is equal to the revenue generated by selling that unit (MR). This equilibrium point is where the firm earns maximum profits as any deviation from this point would lead to a decrease in profits.

Economic Profits Are Maximized at the Point at Which