In the short run, a perfectly competitive firm maximizes profit at that point where the upward rising part of the MC curve intersects the MR curve. Fully explain in your own words why the other intersection point of MC and MR is not considered as a profit-maximizing point. (No need to include any graphs here)

In the short run, a perfectly competitive firm maximizes profit at that point where the upward rising part of the MC curve intersects the MR curve. Fully explain in your own words why the other intersection point of MC and MR is not considered as a profit-maximizing point. (No need to include any graphs here)

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter22: Perfect Competition

Section: Chapter Questions

Problem 6QP

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