Marginal revenue, marginal cost & profit maximization, Microeconomics

Marginal Revenue, Marginal Cost & Profit Maximization

* Determining profit maximizing level of output

- Profit (π ) = Total Revenue - Total Cost

- Total Revenue (R) = Pq

- Total Cost (C) = Cq

- Therefore:

1303_marginal revenue3.png

449_marginal revenue.png


966_marginal revenue1.png

Marginal Revenue, Marginal Cost & Profit Maximization

* Marginal revenue is additional revenue from producing one more unit of output.

* Marginal cost is additional cost from generating one more unit of output.

1274_marginal revenue2.png

* Comparing R(q) and C(q) 

- Output levels: 0- q0:                        

  • C(q)> R(q)
Posted Date: 10/12/2012 5:15:26 AM | Location : United States







Related Discussions:- Marginal revenue, marginal cost & profit maximization, Assignment Help, Ask Question on Marginal revenue, marginal cost & profit maximization, Get Answer, Expert's Help, Marginal revenue, marginal cost & profit maximization Discussions

Write discussion on Marginal revenue, marginal cost & profit maximization
Your posts are moderated
Related Questions
Estimating Labour Productivity by Economic Sector for Target Year and its Change between Base and Target Year Contribution of each sector to GDP is known. The contribution of

How does production possibility curve help solve central problems?

graphical illustration describing the influence of an increase in immigrants on the market supply of labour

Define the Production Possibilities Curve and explain the basic economics concepts using the PPC. Explain the factors tht shift the PPC outwards

Economies of Scale The reduction in the cost of each additional unit produced as all factors of production increase. Factors contributing to economies of scale include discoun

factor afecting the demand for durable product

What is corporate governance? Why is it important for board of directors to ensure good corporate governance within a company? Students need to define corporate governance concisel

how is price and output equilibrium determined in Williamson''s model of managerial discretion?

why d block elements are called inner transition elements?