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Explain How a Firm in a Competitive Market Identifies the Profit-Maximizing

question 137

Essay

Explain how a firm in a competitive market identifies the profit-maximizing level of production. When should the firm raise production, and when should the firm lower production?


Definitions:

Economists

Professionals who study, develop, and apply theories and concepts from economics and write about economic policy.

Utility

A measure of satisfaction or happiness that a consumer receives from consuming goods and services.

Pleasure

A feeling of happiness, enjoyment, or satisfaction derived from an experience or activity.

Satisfaction

The fulfillment of one's wishes, expectations, or needs, or the pleasure derived from this.

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