8 - California State University, Northridge

To maximize profit, set the derivative of the profit function equal to zero . dTR - dTC = 0. dQ dQ . Since we know that those above fractions are equal to MR and MC respectively we can substitute them into the equation. MR - MC = 0. MR = MC. For a competitive firm to maximize profits they must produce at an output where MR is equal to MC ................
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