Why is profit maximising at MC=MR?

Mathematically: Profit = TR-TC Maximum profit is when the derivative of the profit function = 0 Differentiating profit: d(TR)/dX - d(TC)/dX = 0 Since the derivatives of TR and TC are MR and MC respectively, we get MR - MC = 0 therefore MC=MR

AP
Answered by Arjun P. Economics tutor

10769 Views

See similar Economics A Level tutors

Related Economics A Level answers

All answers ▸

Why cannot firms in perfect competition sustain supernormal profits in the long run?


Do monopolies always seek to profit maximise?


1) Evaluate potential strategies that could be adopted by an economy that is heavily dependent on primary products to aid development (25 marks)


Explain what is meant by the term "perfect competition"


We're here to help

contact us iconContact ustelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

MyTutor is part of the IXL family of brands:

© 2026 by IXL Learning