Describe MRPL and profit maximisation, Managerial Economics

Assignment Help:

Q. Describe MRPL and profit maximisation?

The common rule is that firm maximises profit by producing that quantity of output where marginal revenue equals marginal costs. Profit maximisation issue can also be approached from the input side. Which is, what is the profit maximising usage of the variable input? To maximise profits, firm must increase usage 'up to the point where the input's marginal revenue product equals its marginal costs'. So arithmetically the profit maximising rule is MRPL = MCL. The marginal revenue product is the change in total revenue per unit change in variable input- presuming input as labour. Which is MRPL = ?TR/?L.


Related Discussions:- Describe MRPL and profit maximisation

MBA, different types of markets and role in managerial economics

different types of markets and role in managerial economics

Way to deal with price rises, a) A country should always protect its dome...

a) A country should always protect its domestic industries. Discuss. b) To what extent can a country actually rely on the principle of Comparative Advantage before engaging

Limitations of uneven distribution of income and wealth, Limitations of Une...

Limitations of Uneven Distribution of Income and Wealth Unlike the historical experience of the now developed countries, the rich in contemporary Third World Countries are not

Indifference curve analysis, Indifference Curve Analysis In the 1930s ...

Indifference Curve Analysis In the 1930s a group of economists, including Sir John Hicks and sir Roy Allen, came to believe that cardinal measurement of utility was not necess

Scarcity and oppotunity cost, how manager can apply scarcity and oppotunity...

how manager can apply scarcity and oppotunity cost in managerial decision making

Stabex, STABEX The STABEX scheme was designed to stabilize earnings fr...

STABEX The STABEX scheme was designed to stabilize earnings from exports of the African, Caribbean and Pacific (ACP) countries to the Community.  It covered seventeen agricult

What are the concept of managerial economics, Concept of Managerial Economi...

Concept of Managerial Economics The discipline of managerial economics deals with characteristics of economics and tools of analysis that are used by business enterprises for dec

Increase in demand - effect on equilibrium price, Increase in demand ...

Increase in demand SS is the supply curve and D 1 D 1 the initial demand curve shifts to the right, to position D 2 D 2 .  P 1 is the initial equilibrium price and q 1

How pollution can make the market equilibrium inefficient, In regards to ai...

In regards to air pollution, use a diagram to show and explain how the existence of pollution can make the market equilibrium inefficient.

Elasticity of demand, a. Explain why the demand for a particular brand is m...

a. Explain why the demand for a particular brand is more elastic than the demand for all cigarettes. If Lucky Strike raised its price by 1% in 1918, was the price elast

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd