Why does not firm make sense to produce fewer units


Problem

If the perfectly competitive firm produces the output at which its marginal cost equals market price, it receives no profit (or a very tiny one) on the last unit it produces. Doesn't it make sense to produce fewer units because the difference between price and marginal cost on the last unit it produces will then be bigger?

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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Macroeconomics: Why does not firm make sense to produce fewer units
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