Describe MRPL and profit maximisation, Managerial Economics

Assignment Help:

Q. Describe MRPL and profit maximisation?

The common rule is that firm maximises profit by producing that quantity of output where marginal revenue equals marginal costs. Profit maximisation issue can also be approached from the input side. Which is, what is the profit maximising usage of the variable input? To maximise profits, firm must increase usage 'up to the point where the input's marginal revenue product equals its marginal costs'. So arithmetically the profit maximising rule is MRPL = MCL. The marginal revenue product is the change in total revenue per unit change in variable input- presuming input as labour. Which is MRPL = ?TR/?L.


Related Discussions:- Describe MRPL and profit maximisation

Income elasticity, Income Elasticity The functional relationship among ...

Income Elasticity The functional relationship among the changes in the quantity demanded for a good or service and the change in income of those persons demanding the good or s

Proportion of market supplied - determinants of demand, Q. Proportion of Ma...

Q. Proportion of Market Supplied - Determinants of Demand? Price elasticity of market demand moreover relies on the proportion of market supplied at the determined price. If le

What are terms included in oligopoly, What are terms included in oligopoly?...

What are terms included in oligopoly? Oligopoly includes: • The meaning of oligopoly, and why it arises • Collusion • Game theory, particularly the concept of the pris

Central bank functions-lender of last resort, Lender of Last Resort The...

Lender of Last Resort The central bank also acts as the lender of last resort. Historically, this function developed out of the special position of the central banks. The centr

What wage will the firm pay, A firm faces a perfectly elastic demand for it...

A firm faces a perfectly elastic demand for its output at a price of $6 per unit of output. The firm, Though, faces an upward-sloped labor supply curve of          E= 20w-120 W

Determine marginal cost and hourly earnings, A firm hires two risk-neutral ...

A firm hires two risk-neutral workers to assemble bicycles and pays $20 for each assembly.Charlie's marginal cost of allocating effort (measured in dollars) to the production proce

Question, Q.2. On the basis of the analysis of the case above, what is your...

Q.2. On the basis of the analysis of the case above, what is your opinion about legalizing marijuana in Canada ?mum 100 words accepted#

Short-run and long-run, 1. Explain the industry and describe the general pa...

1. Explain the industry and describe the general pattern of change of the particular market model. 2. Hypothesize the basic short-run and long-run behaviours of the model in the

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd