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
21,523,612 questions answered
Popular Conversations
NAACP
Weegy: The NAACP seems to find racism all around them, but they can't recognize their own! the entire organization is a ...
6/30/2015 9:02:47 AM| 3 Answers
(3k + 4)(3k2 – 5k – 3)
6/30/2015 7:27:10 AM| 2 Answers
a2 + ab – 56b2
6/30/2015 7:29:55 AM| 2 Answers
Which of the following would use a convex lens? magnifying ...
Weegy: A magnifying glass (called a hand lens in laboratory contexts) is a convex lens User: Which of the following ...
6/30/2015 8:50:12 AM| 2 Answers
When sending workplace e-mails, it is important to A. use ...
Weegy: When sending workplace e-mails it is important to: communicate in the right tone. User: Which of the ...
6/30/2015 9:00:36 AM| 2 Answers
Weegy Stuff
S
1
L
P
1
Points 14 [Total 1420]| Ratings 0| Comments 14| Invitations 0|Offline
S
Points 7 [Total 518]| Ratings 0| Comments 7| Invitations 0|Offline
S
Points 7 [Total 827]| Ratings 0| Comments 7| Invitations 0|Offline
S
L
P
Points 4 [Total 3563]| Ratings 0| Comments 4| Invitations 0|Offline
S
P
C
L
P
L
1
P
P
1
P
1
Points 2 [Total 9531]| Ratings 0| Comments 2| Invitations 0|Offline
S
1
L
L
Points 2 [Total 8382]| Ratings 0| Comments 2| Invitations 0|Offline
Points 0 [Total 0]| Ratings 0| Comments 0| Invitations 0|Offline
Points 0 [Total 0]| Ratings 0| Comments 0| Invitations 0|Offline
S
Points 0 [Total 0]| Ratings 0| Comments 0| Invitations 0|Offline
S
Points 0 [Total 0]| Ratings 0| Comments 0| Invitations 0|Offline
Home | Contact | Blog | About | Terms | Privacy | Social | ©2015 Purple Inc.