Profit maximization
5:00
Khan Academy
Profit maximization
Learn how firms maximize profit by producing a quantity where marginal cost equals marginal revenue. In a competitive market, firms are price-takers, and marginal revenue is constant. Rational firms will produce more if marginal revenue is higher than marginal cost. Profit is maximized when the area of the rectangle formed by average total cost ...
Feb 19, 2019
Profit Maximization Formula
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