Changes

Jump to navigation Jump to search

Economics Discussion (view source)

Revision as of 19:36, May 19, 2013

249 bytes added ,  19:36, May 19, 2013
→‎Topic 1: That is when total profits are at their maximum for a firm.
Line 2: Line 2:  
== Topic 1 ==
 
== Topic 1 ==
   −
Why do sellers, including even [[monopolies]] always sell their products where marginal revenue (MR) equals marginal cost (MC): MR=MC?
+
Why do all firms, including even [[monopolies]] always sell their products where marginal revenue (MR) equals marginal cost (MC): MR=MC?
 +
 
 +
:Because all firms want to maximize profits, and profits are at their maximum when marginal profit = 0.  But marginal profit (MP)= MR-MC, so when MP=0, then MR-MC=0, which means MR=MC.  That is when total profits are at their maximum for a firm.
    
== Topic 2 ==
 
== Topic 2 ==
Aschlafly
Anthony, Irenaeus, Siteadmin, apieditor, Bureaucrats, Check users, nsAm_Govt_101RO, nsAm_Govt_101RW, nsAm_Govt_101_ta, nsJudgesRO, nsJudgesRW, nsJudges_talkRO, nsJudges_talkRW, nsTeam2RO, nsTeam2RW, nsTeam2_talkRO, nsTeam2_talkRW, oversight, Administrators
126,208

edits

Retrieved from "https://www.conservapedia.com/Special:MobileDiff/1053062"

Navigation menu