When the firm is a price maker, at the quantity where profit is maximized

Name: When the firm is a price maker, at the quantity where profit is maximized
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Question

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In a scenario where the firm is a price maker and maximizes profit, the condition MC=MR<P holds. This is because the firm sets a price (P) higher than the marginal cost (MC) and marginal revenue (MR) to maximize profits, and the equality MC=MR determines the profit-maximizing output level.

When the Firm Is a Price Maker, at the Quantity