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

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Answered by Arjun P. Economics tutor

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