How is marginal analysis lead to profit-maximizing quantity, Managerial Economics

Assignment Help:

How is marginal analysis lead to profit-maximizing quantity of output?

Marginal Analysis leads to Profit-Maximizing Quantity of Output:

The price-taking firm’s optimal output rule is about the price-taking firm’s profit is maximized through producing the quantity of output at that the marginal cost of the final unit produced is equivalent to the market price.

The marginal revenue curve demonstrates how marginal revenue varies by output varies.

1325_The Price-Taking Firm’s Profit-Maximizing Quantity of Output.png

The Price-Taking Firm’s Profit-Maximizing Quantity of Output

The profit-maximizing is a point where the marginal cost curve is crosses the marginal revenue curve that is a horizontal line at the market price.


Related Discussions:- How is marginal analysis lead to profit-maximizing quantity

Monopolistic practices, MONOPOLISTIC PRACTICES The following practices...

MONOPOLISTIC PRACTICES The following practices may be said to characterize monopolies. Exclusive dealing to supply and collective boycott Producers agree to supply onl

Factors affecting size of national income, Factors affecting the size of  N...

Factors affecting the size of  National Income The size of nation's income depends upon  the quantity and quality of the factor endowments at its disposal. A nation will be ri

Evaluate the marketing strategy, Joe is evaluating the marketing strategy a...

Joe is evaluating the marketing strategy at his restaurant and inn. Suppose that in response to a $2.00 off sales promotion for spaghetti dinners, Joe finds that nightly dinner sal

Inflation is not possible under the gold standard, "Inflation is not possib...

"Inflation is not possible under the gold standard." Is this declaration true, false, or uncertain? Describe your answer

Ols estimator, The variance of the OLS estimator is VAR( ^B)=σ 2 /ns 2 x ...

The variance of the OLS estimator is VAR( ^B)=σ 2 /ns 2 x , where   s 2 x =£x 2 /x You're hired to estimate   and you're going to be paid according to the accuracy of your esti

Price-output determination under oligopoly, (Kinky Demand Curve) Short Peri...

(Kinky Demand Curve) Short Period Kinked demand curve was first used by Prof. Paul M. Sweezy to elucidate price rigidity under oligopoly. In an oligopoly market, firm knows that

Types of pricing, example problems for the types of pricing

example problems for the types of pricing

Difference between a static budget and a flexible budget, 1.  What is the d...

1.  What is the difference between a static (master) budget and a flexible budget? Ans:  static budget is where a budget doesn't change a volume changes.  An example could be th

Phillips curve, PHILLIPS CURVE   The Phillips  curve,  named  after  A....

PHILLIPS CURVE   The Phillips  curve,  named  after  A.  W.  Phillips,  describes  the  relationship between unemployment  and  inflation. In  1958  Phillips, then  professor a

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