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

10921 Views

See similar Economics A Level tutors

Related Economics A Level answers

All answers ▸

Explain the concept of internal economies of scale and the three stages of returns that can occur when firms increase their factors of production? Graphs maybe used in your answer


Explain how changes in prices allocate scarce resources in a market economy [12 marks]


Explain opportunity cost


What is a public good?


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