All products business makes are sold at same market price {marginal revenue} {revenue}|. To obtain maximum profit, quantity produced must make marginal cost equal price. This is true in both competitive and monopoly markets, but price will be higher in monopoly. Businesses calculate total costs and total revenues at different prices and outputs {break-even chart}, to find the one equal point {break-even point}. Price-setting methods {average cost pricing} can add percentage of average total cost to average total cost.
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Date Modified: 2022.0224