Technically a firm should earn more profit if MR is greater than MC because when MC = MR it should be no profit no loss situation? But according to our textbooks when MR=MC the profit is maximum I need help understanding it
From what I have understood so far, the point where MR=MC is where profit maximisation occurs because when you go further to the right until it reaches the point, you are producing additional units of output, thus maximising profit. However, if MR is greater than MC, you aren't maximising profits because you aren't producing additional output that can earn greater profits. I hope this makes sense, sorry if it doesn't.
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Great explanation! Thanks
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well explained
Now i understand how to look at these graph. Thanks
That was very helpful..thank you so much
Good Explanation!! It helped.
thank you very much , great explanation
Technically a firm should earn more profit if MR is greater than MC because when MC = MR it should be no profit no loss situation? But according to our textbooks when MR=MC the profit is maximum
I need help understanding it
From what I have understood so far, the point where MR=MC is where profit maximisation occurs because when you go further to the right until it reaches the point, you are producing additional units of output, thus maximising profit. However, if MR is greater than MC, you aren't maximising profits because you aren't producing additional output that can earn greater profits. I hope this makes sense, sorry if it doesn't.
Understood.
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This makes sense now!
Thank you so much professor.
its very helpful
This is good
Finally got this
Wow, one of the best economics videos; I did not realize I should draw the vertical lines up to the lines... wow
Me too😅
That's because you shouldn't it's a mistake 😊
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Nice
thank you
Consumer price index
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