Chapter Nine: Profit Maximization
The profit maximizing quantity is where the revenue function and the cost function have the same slope and where the distance between them is maximized. The condition that the two functions have the same slope is the same as saying that marginal revenue equals marginal cost. Marginal Revenue Revenue is equal to price multiplied by quantity.
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Chapter Nine: Profit Maximization
faculty.metrostate.eduChapter 9 Lecture Notes 3 A graph showing a revenue curve and a cost curve, with the profit maximizing quantity being that quantity where the vertical difference
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