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What is profit maximizing production in the short run?
Simply put, profit maximizing production in the short run is the procedure that helps a firm to determine the output level and the cost that ensures highest profits. There are primarily two ways to solve this problem. First, the total revenue–total cost method based on the fact that the profits are equivalent to revenue subtracting the cost and concentrates on this difference. Second, marginal revenue–marginal cost method, that assumes that the profit goes to its maximum level when the marginal cost is equal to the marginal revenue
Why profit maximizing production in the short run important?
Understanding the profit maximizing production in the short run is essential, because it helps a firm under perfect completion to maximize its value! In real-life the situations differ owing to changing market conditions and this concept helps to know business scenarios and profits better. Myhomeworkhelp.com’s Profit Maximizing Production in the Short Run homework Help service offers graphical explanations for both these methods and represents it in a simple format. Furthermore, our service completes your assignments within the deadline. In terms of the price, we save you from overspending by charging a nominal rate.
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