Short-run profits are maximized if the firm produces where marginal cost equals price.

Name: Short-run profits are maximized if the firm produces where marginal cost equals price.
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This is the basic principle of profit maximization in the short run. At the point where marginal cost equals price, the firm is producing the quantity where the revenue gained from selling one additional unit equals the cost of producing that unit, thus maximizing profits in the short run.

Short-Run Profits Are Maximized If the Firm Produces Where Marginal