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, Discuss whether Indian Consumer goods industry is growing at the cost ...

Discuss whether Indian Consumer goods industry is growing at the cost of future Profitability.

Evaluate the regression, Question: (a) The regression results for the ...

Question: (a) The regression results for the quantity demanded of good X is given by ln Q X = 1220 - 9.5 ln P X - 2.21 ln P Y + 1.01 ln M t values (5.3)  (-5.1

Question, Calculate point elasticity of demand for demand function Q=10-2p ...

Calculate point elasticity of demand for demand function Q=10-2p for decrease in price from Rs 3 to Rs 2

Problems of prices and incomes policy, Problems of prices and Incomes polic...

Problems of prices and Incomes policy i. Confrontation The imposition of the prices and incomes policy, voluntary or statutory, risks the possibility of confrontation w

What is the expected profit, The Barcelona Football Club is considering the...

The Barcelona Football Club is considering the signing of a player of international fame. The problem is that the player has a reputation for having a weak knee. The probability th

Fezzes is perfectly competitive, The  fez is the typical Arabic hat in the ...

The  fez is the typical Arabic hat in the shape of a short red cylinder. Historians believe it was manufactured in the city of Fes, in Morocco, during the 17 th century. It has be

Short run output and price, SHORT RUN OUTPUT AND PRICE In monopolistic...

SHORT RUN OUTPUT AND PRICE In monopolistic competition, it's the product differentiation that permits its price without losing sales.  Due to brand loyalty consumers will c

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