Marginal Revenue

If you are referring to mr – mc, then the marginal cost cannot ever be 0 and your question would be meaningless.

However. forgetting the marginal cost, if the marginal revenue = 0 then it means we have reached the maximum revenue.

(At lower levels, more sales means more revenue so MR would be positive. At higher levels, more sales means less revenue (because of having a lower selling price) so MR would be negative.

Maximum revenue occurs when MR = 0)

Pls sir assist me on this question:

At a selling price of $200, the demand will be 100,000 units per annum.
The demand will change by 10,000 units for every $30 change in the selling price.
The fixed costs are $60,000 per annum, and the variable costs $8 per unit.

At what selling price per unit will the profit be maximised?

Ohgreat: Why have you simply repeated the question from Favour? What is the point of doing that? And why have you asked the same question in two different places? I have just answered your other post.

Favour:

Have you watched the free lecture on this, where I go through examples on how to do this?

You need first to derive the price demand equation.

Then you can use the formula on the formula sheet in order to get the equation for the marginal revenue.
Then you make marginal revenue equal to marginal cost (which in this example is 8).

That will give you Q (the quantity in order to get maximum profit).
When you have Q you can put it in the price/demand equation and calculate the selling price necessary for maximum profit.

Thanks John.

the price to maximized he profit are 254