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MC = MR ?

This topic has 1 reply, 2 voices, and was last updated 1 month ago by John Moffat.

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December 3, 2022 at 11:53 am #673209
youshaali
Participant
- Topics: 18
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Hello tutor!!
Is it mandatory in every Marginal Cost (MC) question that MC always equals to MR ?
Because I have seen some questions in which if we, say, producing 13 units, profit is maximising but if production goes to 14 units profit starts decreasing and on 13 units our MC does not equates to MR.
So is it okay that sometimes MC does not get equal to MR ?
December 3, 2022 at 4:53 pm #673246
John Moffat
Keymaster
- Topics: 57
- Replies: 51551
Have you watched my free lectures on pricing, because maximum profit occurs when MC = MR only when the selling price that arrived from the equation is a possible selling price. Otherwise we need to use the tabular approach. I explain all this in my free lectures.
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