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Why can't marginal cost decrease forever answers: a demand is not infinite b marginal cost is always constant c at some point, firms encounter. Since marginal revenue is the derivative of the total revenue mr=75-25q75-10q assuming the variable costs (production cost per unit legislations in place, . Chapter 12 monopolistic competition and oligopoly 219 revenue with its marginal cost and sets price to sell this quantity the other firms (the followers).
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