You have new items in your feed. Click to view.
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
27,242,155 questions answered
Popular Conversations
Regarding use of the media, spin can best be defined as A. ...
Weegy: Regarding use of the media, spin can best be defined as casting a positive light on negative facts. User: Who ...
3/28/2017 8:09:07 AM| 2 Answers
Decisions should be made with little to no thought. True False
Weegy: False is a statement to a person or group made by another person or group who knows it is not the whole truth, ...
3/28/2017 11:04:20 AM| 2 Answers
Weegy Stuff
S
Points 616 [Total 717] Ratings 0 Comments 616 Invitations 0 Offline
S
Points 566 [Total 566] Ratings 0 Comments 566 Invitations 0 Offline
S
P
P
L
P
Points 287 [Total 1605] Ratings 1 Comments 277 Invitations 0 Online
S
R
Points 205 [Total 305] Ratings 1 Comments 145 Invitations 5 Offline
S
P
P
L
P
P
Points 184 [Total 1636] Ratings 1 Comments 174 Invitations 0 Offline
S
Points 30 [Total 40] Ratings 3 Comments 0 Invitations 0 Offline
S
P
P
Points 14 [Total 744] Ratings 0 Comments 14 Invitations 0 Offline
S
Points 13 [Total 13] Ratings 1 Comments 3 Invitations 0 Offline
S
Points 12 [Total 12] Ratings 0 Comments 12 Invitations 0 Offline
S
Points 10 [Total 10] Ratings 0 Comments 0 Invitations 1 Offline
* Excludes moderators and previous
winners (Include)
Home | Contact | Blog | About | Terms | Privacy | © Purple Inc.