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

10788 Views

See similar Economics A Level tutors

Related Economics A Level answers

All answers ▸

The demand curve can be graphed using the expression Q = 100 - P and the supply curve can be graphed using the expression Q = 40 + 2P. Find the equilibrium price and quantity in this market.


Can you explain the multiplier effect?


In an economy consumption=50, investment=60, government spending=160, imports=60 and exports=40. What is the aggregate demand of the economy


How do you calculate Price Elasticity of Demand


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