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Can you explain me the profit maximization when firm is the price taker?
This question asked by simran . from university of arizona
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The profit-maximzing rule (MR = MC) is the smae for price takers and price makers, The key thing to recall is that there is second part to the rule that a lot of students forget, it is a rule for stopping prodction. This means that you find the point where MR = MC and MC is is also rising -- this guarantees that you stop at the point where the firm makes the most profit.
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