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Why must the marginal revenue be equal to the marginal cost for a producer? Explain.

Economics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506725

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter21: Costs And The Supply Of Goods

Section: Chapter Questions

Problem 5CQ

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Why must the marginal revenue be
equal to the marginal cost for a
producer? Explain.

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