banner_ad

Advance Mgt Acc.

Final 333 views 3 replies
Profit is max. when "Marginal Revenue=Marginal Cost".
Can anybody tell me why is it so?
Replies (3)
In the case where Marginal (additional) Revenvue is equal to Marginal cost, then the organization can enjoy it's leverage in fixed costs by producing some more units,this will result in profit maximization
A firm enjoys maximum profit when marginal revenue equals marginal cost..


Though this is not a subject of advance accountancy.
Its core profit maximization in Economics.


The word marginal means additional.
Any increase in additional cost can equalize additional revenue.

Marginal revenue should always be greater than marginal cost.
Can anybody please prove the statement mathematically?


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
Featured 28 March 2026
Accountant

Ashok Amol & Associates

New Delhi

B.Com

View Details
Company
Featured 14 April 2026
GST CONSULTANT

Abhishek G Agrawal & Co.

Korba

CA Final

View Details
Company
Featured ARTICLESHIP 19 March 2026
Article Assistant

Gupta Sachdeva & Co. Chartered Accountants

New Delhi

CA Final

View Details
Company
Featured 13 April 2026
GST CONSULTANCY

Abhishek G Agrawal & Co.

Korba

CA Final

View Details
Company
Featured 29 April 2026
Manager- Finance and Compliance

Naveen Fintech Pvt Ltd

Kolkata

CA Inter

View Details
Company
Featured 28 March 2026
CA Final

Ashok Amol & Associates

New Delhi

CA Final

View Details