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Profit Maximisation

Profit Maximisation

Profit-maximising output shown where the rising MC curve crosses MR, with price read from AR and a profit rectangle

Traditional theory assumes that firms aim to maximise profit. Profit is maximised at the output where marginal cost equals marginal revenue: MC=MR\text{MC} = \text{MR}MC=MR.

1.5.2 The objectives of firms Lesson

  1. A Level
  2. /Economics
  3. /1.5.2 The objectives of firms

Step-by-step lessons on AQA A Level Economics 1.5.2 The objectives of firms. Each one builds up to exam-style questions. Start with the core supply-and-demand models before moving on to the more evaluation-heavy macroeconomic policy topics.

Lessons