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
Answered by Arjun P. Economics tutor

10791 Views

See similar Economics A Level tutors

Related Economics A Level answers

All answers ▸

What is inflation? What is the difference between real and nominal GDP and why is it important to measure GDP in real growth terms?


1) Evaluate potential strategies that could be adopted by an economy that is heavily dependent on primary products to aid development (25 marks)


Why does excessive consumption of alcohol lead to negative externalities ?


Why does a rise in interest rates lead to a fall in inflation?


We're here to help

contact us iconContact ustelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

MyTutor is part of the IXL family of brands:

© 2026 by IXL Learning