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Suppose a firm finds itself producing at a point where price has risen and now marginal revenue is greater than marginal cost. what should it do to maximize profits?

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ardobbs5

This means they are now spending more to make the product than they are receiving for selling the product. Thus, they would have two choices: either find cheaper materials to lower their cost of production or increase their price that they sell the product at. (i.e. raising the price from $5 to $10)

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