xplain the three possible profit-maximizing positions of perfectly competitive firms in the short run and provide the related graphs for each with an explanation of the graphs. (Positive Profit) (Normal Profit) (economic loss or negative economic profit.)
Explain the three possible profit-maximizing positions of
To expand profits in an entirely competitive market, firms set minor income equivalent to minimal expense (MR=MC). MR is the slant of the income bend, which is likewise equivalent to the interest bend (D) and value (P). For the time being, it is feasible for financial profits to be positive, zero, or negative. At the point when the cost is more noteworthy than a normal complete expense, the firm is making a profit. At the point when the cost is not exactly normal all-out cost, the firm is making a loss on the lookout. Financial profit can be positive, negative, or zero. In the event that monetary profit is positive, there is the impetus for firms to enter the market. In case profit is negative, there is the motivation for firms to leave the market. In case of profit is zero, there is no impetus to enter or exit.
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