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Explain how the short run price and output decisions of a profit maximising firm would differ from those of a revenue maximising firm

      

Explain how the short run price and output decisions of a profit maximising firm would differ from those of a revenue maximising firm

  

Answers


marlyne
In the absence of other constraints, profit maximising firms will produce at the point where MC equals MR and will charge the highest price possible as dictated by the demand curve.
Revenue maximising firms on the other hand will produce at the point where MR is equal to zero and again charge the highest price possible as dictated by the demand curve.
marlinbito answered the question on July 8, 2018 at 17:40


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