Maximizing Profits
Completion requirements
Once you have fully understood that a firm maximizes profit by producing
the quantity of output at which marginal revenue equals marginal cost,
you are well-equipped to calculate the economic profit for that level of
output by simply subtracting total cost from total revenue for that
specific quantity. You can follow the explanation in the text above or
in the following video. You may need to review the cost curves in Unit 6
(section 6.2.).
Source: Mary J. McGlasson, https://www.youtube.com/watch?v=J_tdZZkRvbg&list=PL336C870BEAD3B58B&index=30
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Last modified: Friday, 2 August 2024, 11:28 AM