Profit Maximization and Deriving Marginal Revenue Curve

Profit maximizing quantity

π (Q) = TR(Q) − TC(Q) .............(1)

(Economic profit) = (sales revenue) – (economic costs)

(Accounting profit) = (sales revenue) – (accounting costs)

125_profit maximizing graph.jpg

473_profit maximization formula.jpg

Deriving Marginal Revenue Curve:

2035_deriving marginal revenue curve.jpg

Amoroso-Robinson Formula:

394_amoroso robinson.jpg

Since demand curve is downward sloping, ε D is always positive. So MR is lower than AR (average revenue, i.e. Price). MR < P .

Ifε D = ∞(horizontal demand, infinitely elastic demand, or Q = 0), MR = AR(= P) .

Marginal Revenue, Price Elasticity and Total Revenue:

1954_marginal revenue-price elasticity-total revenue.jpg

Profit Maximization: Revisited

a) Oversimplification problem
b) Any alternative ways?
c) Asymmetric Information

Latest technology based Microeconomics Online Tutoring Assistance

Tutors, at the www.tutorsglobe.com, take pledge to provide full satisfaction and assurance in Microeconomics help via online tutoring. Students are getting 100% satisfaction by online tutors across the globe. Here you can get homework help for Microeconomics, project ideas and tutorials. We provide email based Microeconomics help. You can join us to ask queries 24x7 with live, experienced and qualified online tutors specialized in Microeconomics. Through Online Tutoring, you would be able to complete your homework or assignments at your home. Tutors at the TutorsGlobe are committed to provide the best quality online tutoring assistance for Microeconomics Homework help and assignment help services. They use their experience, as they have solved thousands of the Microeconomics assignments, which may help you to solve your complex issues of Microeconomics. TutorsGlobe assure for the best quality compliance to your homework. Compromise with quality is not in our dictionary. If we feel that we are not able to provide the homework help as per the deadline or given instruction by the student, we refund the money of the student without any delay.

©TutorsGlobe All rights reserved 2022-2023.