Respond to the question with a concise and accurate answer, along with a clear explanation and step-by-step solution, or risk receiving a downvote. You are the CEO of a firm operating in a perfectly competitive market with a plant size of 5. Your MC is higher than the MR. Explain what you do for the firm to reach the profit maximizing point? Provide a graph that shows rationale behind your answer. It might be helpful to include in the graph the plant capacity and the amount at which it produces at the lowest point of the MC curve.

Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter5: Investment Decisions: Look Ahead And Reason Back
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Respond to the question with a concise and accurate answer, along with a clear explanation and step-by-step solution, or risk receiving a downvote.

You are the CEO of a firm operating in a perfectly competitive market with a plant size of 5. Your MC is higher than the MR. Explain what you do for the firm to reach the profit maximizing point? Provide a graph that shows rationale behind your answer. It might be helpful to include in the graph the plant capacity and the amount at which it produces at the lowest point of the MC curve.

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