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Explain why profits are largest when mc=mr and not when mr>mc ? and is there a...

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Economics

Explain why profits are largest when mc=mr and not when mr>mc? and is there a difference between sales revenue maximizing andprofit maximizing?

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4.4 Ratings (599 Votes)
A typical marginal revenue curve is downward sloping meaning that with more quantity purchased the marginal revenue for each next unit is lower than for the previous unit On the other hand a typical marginal cost curve is upward    See Answer
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