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Answer to Question #106973 in Macroeconomics for Johnson
Question #106973
Using the axis Depict the marginal revenue and marginal cost curve with the conclusion that the optimal short run output is q = 1000
Expert's answer
If the industry is perfectly competitive, then marginal revenue (MR) curve is horizontal, marginal cost (MC) curve is upward-sloping, they will intersect (MR = MC) at the optimal short run output q = 1000.
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