Jones is a price-taker producer in some market, and we learned that his most profitable output is where marginal cost equals the market price. How can this possibly be true, since its cost equals revenue profits can never be higher than zero?
Since firm is price taker. Therefore, he will maximize its profit at a point where MR=MC and at that point there is no economic abnormal profit.
For rest of the explaination I am uploading images.
Hence firm continue to produce at a point where MR= MC as it maximize the firm's profit
Jones is a price-taker producer in some market, and we learned that his most profitable output...
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