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

Distinguish between of trade and the balance of trade, Distinguish among th...

Distinguish among the terms of trade and the balance of trade for a country. Definition of terms of trade a) The amount of a given amount of export goods essential to buy

Types of common property resource, Normal 0 false false fal...

Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4

Transfer payments, Transfer Payments: Governments typically redistribute a ...

Transfer Payments: Governments typically redistribute a share of tax revenues back to specified groups of individuals in form of several social programs (like welfare benefits, pub

Work of denison, Work of Denison Normal 0 false fa...

Work of Denison Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4

Microeconomics, when the demand function is 2q-24+3p=0,find marginal revenu...

when the demand function is 2q-24+3p=0,find marginal revenue when q=3

\, Select the production possibilities curve for an economy with 42 units o...

Select the production possibilities curve for an economy with 42 units of labor

Chemistry project help, I have a chemistry project which is title: "combati...

I have a chemistry project which is title: "combating desertification" so I have to come up with a practical solution to stop desertification or limit the spreading of deserts.. Is

What is the policy of the east asian miracle, The East Asian Miracle Ho...

The East Asian Miracle However the set of extraordinarily successful economies isn't limited to the set of original OECD economies. Economies of the East Asian miracle have ove

What is utility maximization according to consumer behavior, What is utilit...

What is utility maximization according to consumer behavior? Consumer Behavior: Utility Maximization A foundational hypothesis onto individual behavior within modern econ

Elasticities of demand:, price of laptop increases by 20% and there is a 40...

price of laptop increases by 20% and there is a 40% drop in the quantity demanded?

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