?Profit maximizationoccurs at the quantity where MR equals MC.
?when MR>MC,
increaseproduct.
?when MR decreaseproduct. ?when MR = MC, Profit is maximized. 汪艳 经济管理学院 双语教学示范课程 132013-7-23 The Firm’s Short-Run Decision to Shut Down?Ashutdownrefers to a short-rundecision not to produce anything during a specific period of time because of current market conditions. 汪艳 经济管理学院 双语教学示范课程 142013-7-23 汪艳 经济管理学院 Profit Maximizationand Supply Curvein the short-run?MR(Q)=SMC(Q)?P=MR ?P=SMC双语教学示范课程 152013-7-23 ?(a) 汪艳 经济管理学院 P=AR=MRPSMCEP1SAC1 AF1AVCB G10 Q1 Q 双语教学示范课程 162013-7-23
