Marginal revenue, marginal cost & profit maximization, Microeconomics

Assignment Help:

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)

Related Discussions:- Marginal revenue, marginal cost & profit maximization

The demand curve of monopoly, when does price and output determined in the ...

when does price and output determined in the unregulated monopoly

Production function curve, different types of production funtion and curve ...

different types of production funtion and curve given by different economist

Critique of economic reforms, CRITIQUE OF ECONOMIC REFORMS: The critiq...

CRITIQUE OF ECONOMIC REFORMS: The critique of economic reforms should consider the actual growth rate achieved, its impact on employment and poverty reduction, its impact on l

Price change, 1.  Seller has ample time to adjust to price change. 2.  B...

1.  Seller has ample time to adjust to price change. 2.  Buyer's response to small price change is significant. 3.  Buyers are faced with many options when deciding to make a

Egyptian Labor Market.., How to use Demand and Supply tools to analyze the ...

How to use Demand and Supply tools to analyze the case of the Egyptian labor market?

Structure of national income, STRUCTURE OF NATIONAL INCOME: The struct...

STRUCTURE OF NATIONAL INCOME: The structure or composition of national income of an economy explains the relative significance of the different producing sectors in an economy

Interest rate dertemination, to what extent are interest rates determined b...

to what extent are interest rates determined by the economic theory

Explain about social-democracy, Q. Explain about Social-Democracy? Soci...

Q. Explain about Social-Democracy? Social-Democracy:It's a reformist political strategy that aims to win certain improvements in social and economic conditions under capitalism

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