Profit is max. when "Marginal Revenue=Marginal Cost".
Can anybody tell me why is it so?
Menu
Advance Mgt Acc.
Replies (3)
Quick Summary
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.
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?
Recent Topics :
- IPO application checklist: 18 rules that decide wh
- NSE IPO Price, GMP, Allotment Date and Listing
- Gst tax rate
- Cash deposited by customer
- CAPITAL GAIN REG
- Built a simple tool to automate client document fo
- Capital Gain on Sale of SRA Allotted Flat Received
- Discrepancy in Auto populated figures in GSTR1 of
- What should I do after receiving a GST Show Cause
- Discuss and Download CA Inter Question Paper Septe
Related Topics :
CAclubindia
