Why is profit maximising at MC=MR?
Mathematically: Profit = TR-TC Maximum profit is when the derivative of the profit function = 0 Differentiating profit: d(TR)/dX - d(TC)/dX = 0 Since the derivatives of TR and TC are MR and MC respectively, we get MR - MC = 0 therefore MC=MR
AP
Related Economics A Level answers
All answers ▸Explain a few problems the UK economy has endured or is expected to endure as a result of the Brexit Referendum.
Evaluate whether higher government spending will always increase inflation.
Explain what could cause the pound sterling to appreciate.
In February 2013, the proposed takeover by Barr of Britvic was referred to the Competition Commission for investigation. There were likely to have been concerns that the takeover would lead to...