The firm whose data are depicted to the right is maximizing
profits by producing where MR = MC. It is producing a level of output well below its capacity. This
firm's production facilities were designed to produce the level
of output marked QC. The firm isn't doing anything wrong, it just may be that market
predictions were overly optimistic when it designed its facility,
or it may have intentionally built excess capacity as a barrier to
entry.
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