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why is the profit maximising output where marginal cost (MC)= marginal revenue (MR)?

Marginal revenue is the revenue generated by selling the last unit of output. Marginal cost is the cost of producing the last unit of output. Profit is maximised at the output where MC=MR because if less out...
RS
Answered by Robin S. • Economics tutor
19221 Views

What are the characteristics of a monopolistic market?

A monopololistic market exists when there exists only one supplier of a good or service, but there are many consumers. Some key characteristics of a monopolistic market are price maker, high barriers to entr...
ZX
Answered by Zhen X. • Economics tutor
7113 Views

What is the perfect technique for reaching the top marks in the longer essay questions?

The key for a good 30 marker is sticking to the same tried and tested method. Start off by defining any key terms in your introduction and potentially referencing data you may have been given. Then in the he...
LG
Answered by Louis G. • Economics tutor
2735 Views

What is price elasticity of demand and how is it measured?

Price elasticity of demand (PED) measures the responsiveness of percentage change in the quantity demanded of a good with respect to a percentage change in the price of a good. It is measured by the formula:...
HZ
Answered by Hadiqa Z. • Economics tutor
16195 Views

Why are no supernormal profits made in perfect competition in the long run?

A perfectly competitive market is a market in which there are many buyers and many sellers who all have perfect information. There are many firms in the market who all produce exactly the same product and th...
DG
Answered by David G. • Economics tutor
26154 Views