This article focus to Define and Discuss on Short Run Supply. Here explain Short Run Supply in economics point of view with examples. A firm maximizes its profits by simply choosing to supply the degree of output where its marginal revenue equals its marginal cost. When marginal earnings exceeds marginal cost, firm can earn better profits by increasing its output. When marginal earnings is below marginal price tag, the firm is taking a loss, and consequently, it ought to reduce its output. Profits are therefore maximized in the event the firm chooses the degree of output where its marginal revenue equals its marginal cost.
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