Question and answer
What is the MC=MR Rule? To what market structures does this Rule apply
to firms in all types of industries
Expert answered|danimai|Points 1220|
Question
Asked 5/27/2012 9:52:58 AM
0 Answers/Comments
Get an answer
New answers
Rating

There are no new answers.

Comments

There are no comments.

Add an answer or comment
Log in or sign up first.
Questions asked by the same visitor
What is the MC=MR Rule?
Weegy: Marginal Cost (MC): The change in total cost as the output level changes one unit. Marginal Revenue (MR): The change in total revenue from the sale of one additional level of output. (More)
Question
Expert Answered
Asked 5/27/2012 9:42:56 AM
0 Answers/Comments
Identified market structures the MC=MR Rule applies to User: Explained the MC=MR Rule
Weegy: MR = MC A firm’s profit is defined as its total revenue minus its total cost. In symbols, p (Q) = R(Q) - C(Q). [ A firm that wishes to maximize its profits may find the corresponding output by differentiating p (Q) with respect to output and finding the output that equates the derivative to zero: dp (Q)/dQ = dR(Q)/dQ - dC(Q)/dQ = MR - MC = 0. That is, profit maximization requires that, if the firm chooses to produce anything at all, it should equate marginal revenue and marginal cost. In the specific case of competitive firms, this takes the form P = MC. The second-order condition is: - PQ* - (FC + VC(Q*)) = p (Q*). Dividing both sides of this inequality by Q* and rearranging, the firm maximizes profit at Q = 0 if and only if P < , that is, if and only if the firm’s price is less than its average variable cost at the MR = MC output. Since average variable cost is equal to marginal cost at the former’s minimum, we can state the complete short-run profit-maximizing rule as follows: produce at the output for which MR = MC, provided price is greater than minimum average variable cost; otherwise shut down. to understand the formula visit this website ] (More)
Question
Expert Answered
Asked 5/27/2012 9:54:31 AM
0 Answers/Comments
18,447,498 questions answered
Popular Conversations
Simplify 12A + 2 + A - 1. 14A - 1 13A - 1 13A + 1 User: ...
Weegy: 12(A - B) = 12A - 12B User: Simplify 10x - 3x + (-5x). -2x 2x 18x -18x Weegy: c.18x User: Simplify ...
11/25/2014 3:05:18 PM| 6 Answers
True or false carbohydrates are made up of carton, hydrogen, and ...
Weegy: The answer is True. Here is the source link: User: The two main types of fiber are?
11/25/2014 7:45:43 PM| 5 Answers
x + y = k x - y = k
Weegy: 8 1/3 - 1 5/6 = 25/3 - 11/6; = 50/6 - 11/6; = 39/6; = 13/2; = 6 1/2 User: 5x + y = 6 5x + 3y = -4 Weegy: ...
11/25/2014 9:09:05 AM| 4 Answers
Determine the solution set of (2x - 5)2 = 11.
Weegy: 2x - 3 = 9 2x = 9 + 3 2x = 12 x = 12/2 x = 6 User: Determine the solution set of (3x + 1)2 - 100 = ...
11/25/2014 11:37:07 AM| 4 Answers
20,000 pounds equals how many English tons?
11/25/2014 3:30:36 AM| 3 Answers
Simplify 20 + (2 + r). r + 22 22r 20r
Weegy: r + 22 User: Simplify (5a)(5b). 10ab 25ab 55ab Weegy: (5a)(5b) = 25ab User: Simplify 7.95 - 3.86 + ...
11/25/2014 8:53:09 AM| 3 Answers
Which personal pronoun best completes the sentence? How is it used? ...
Weegy: My father made my sister and ME blueberry pancakes for breakfast. The correct pronoun is: me; indirect object. ...
11/25/2014 9:42:28 AM| 3 Answers
t Object]User: y + 3 = 2x y + 4 = 3x If you use the comparison ...
Weegy: 31/8 and 25/8 User: What is the result of adding the system of equations? 2x + y = 4 3x - y = 6 x = 2 x = ...
11/25/2014 10:32:36 AM| 3 Answers
Which of the following is the correct factored form of the given ...
Weegy: The correct factored form of the given equation x^2 + 3x - 4 = 0 is (x - 1)(x + 4) = 0. User: olve n3 + 2n2 ...
11/25/2014 11:30:00 AM| 3 Answers
Which of the following is the correct factored form of the given ...
Weegy: (x - 3)^2 = 0 written in general form is: x^2 - 6x + 9 = 0 Expand (x - 3)^2 = x^2 - 3x - 3x + 9 = x^2 - 6x + ...
11/25/2014 11:33:47 AM| 3 Answers
The graph of which of the following will be perpendicular to the ...
Weegy: The graph of which of the following will be perpendicular to the graph of y = 2x ? 4? D. 2x + 4y = 1 User: Two ...
11/25/2014 1:29:11 PM| 3 Answers
Weegy Stuff
S
L
1
L
P
C
1
P
C
1
L
P
C
1
Points 2632 [Total 14342]| Ratings 10| Comments 2532| Invitations 0|Online
S
L
Points 1435 [Total 3721]| Ratings 0| Comments 1435| Invitations 0|Offline
S
L
Points 777 [Total 1298]| Ratings 6| Comments 717| Invitations 0|Offline
S
1
L
1
L
P
P
L
P
Points 761 [Total 14135]| Ratings 0| Comments 761| Invitations 0|Offline
S
Points 697 [Total 729]| Ratings 1| Comments 687| Invitations 0|Offline
S
1
L
L
Points 273 [Total 6667]| Ratings 0| Comments 273| Invitations 0|Offline
S
L
Points 159 [Total 1455]| Ratings 3| Comments 129| Invitations 0|Offline
S
Points 78 [Total 78]| Ratings 1| Comments 68| Invitations 0|Online
S
Points 50 [Total 50]| Ratings 0| Comments 0| Invitations 5|Offline
S
Points 46 [Total 46]| Ratings 3| Comments 6| Invitations 1|Offline
Home | Contact | Blog | About | Terms | Privacy | Social | ©2014 Purple Inc.