Where on a firm diagram would a firm be at a profit maximising equilibrium?

A profit maximising equilibria is one in which the firm maximises overall profit over all other potential outcomes. The point at which the firm is maximising profit is where marginal revenue intersects marginal cost.

(The white board function isn't working, but I'd also add a lablled diagram, showing the equilibria here)

HC

Related Economics A Level answers

All answers ▸

How do you know whether the demand for a good is price elastic or price inelastic?


How to identify/draw the different types of externalities


Why is the marginal cost curve shaped the way it is?


Define what a Demerit Good is and explain why they are often over-consumed in the free market.