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How much output can a firm produce?

How much output can a firm produce?

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Answer #1

If the firm is in a perfect market, they can produce as much output as they can at the given price. They will produce at the point where the Marginal cost and the price of the firm will be equal .

If the firm is a monopoly or monopolistic competition then they will produce at the point where the MR and the MC are equal. this will be there profit maximizing output, being a price searcher in the market if they produce more than this the profit will decrease.  

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