MR=MC The Profit Maximization Rule

The firm will produce as long as MR exceeds MC. The firm maximizes profits if production continues until MR equals MC. Of course, the firm should not produce past this point, because after that point MC will exceed MR (if MC is upward sloping and MR is horizontal or downward sloping). This video is made for 1st year college students or AP/IB Economics students. It focuses on foundational economic concepts.

[@AsadKozibaev-k6d]

You have taught me a thing in minutes, which my econ professors couldn't during the whole semester

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[@pulkeshsharma6603]

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[@lewenkingdom5002]

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[@AbdulAziz_1261]

well explained

[@aleksastanojevic475]

Great explanation! Thanks

[@undeadsatan3317]

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[@IsacRajan97]

Good Explanation!! It helped.

[@__Bs._82]

Understood.

[@shaaly4072]

Now i understand how to look at these graph. Thanks

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[@mashaprima3847]

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[@mst.rupalyakter8943]

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[@raniavlachou2030]

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[@tannahmutune8245]

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[@martinkabinga4785]

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[@jasonfifty5]

Thank you so much professor.

[@Force_of_nature_007]

its very helpful

[@NikhilDevarajThegamer]

This makes sense now!

[@mahekahuja6780]

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

[@archivebynima]

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.

[@Ana-Nas]

Wow, one of the best economics videos; I did not realize I should draw the vertical lines up to the lines... wow

[@pulkeshsharma6603]

Me too😅

[@DaskDask-nm7zu]

That's because you shouldn't it's a mistake 😊

[@Ana-Nas]

@@DaskDask-nm7zu what??? Can you tell more?

[@PartnerWithAngela]

Finally got this

[@KM-fh4wt]

Nice

[@meselechseyoum-f7k]

thank you

[@brightkyereh9160]

Consumer price index

[@anshrughwani4250]

Mc is u shaped?

[@kafrikotroll8610]

You rock 👏