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

10801 Views

See similar Economics A Level tutors

Related Economics A Level answers

All answers ▸

With reference to the extract, how price elastic would supply of nuclear energy be?


What is a Pigouvian Tax?


Explain how an increase in interest rates may affect aggregate demand in an economy


Explain the assumptions behind perfect competition and how firms behave under this market structure.


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