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Pricing (profit maximising output)

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Pricing (profit maximising output)

  • This topic has 1 reply, 2 voices, and was last updated 11 years ago by John Moffat.
Viewing 2 posts - 1 through 2 (of 2 total)
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    Posts
  • March 14, 2014 at 6:15 am #162321
    tmdebs
    Member
    • Topics: 5
    • Replies: 11
    • ☆

    Dear John, Thanks for the good work.
    Please help me distinguish the use of these two curves (of TC Vs TR) in explaining the profit maximising output. So i have simply attached the links.

    https://tutor2u.net/economics/content/topics/buseconomics/objectives_profitmax.htm
    https://upload.wikimedia.org/wikipedia/commons/d/d5/Profit_max_total_small.svg

    Thanks

    March 14, 2014 at 8:03 am #162324
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54662
    • ☆☆☆☆☆

    You will never be asked to draw any graphs relating to this.

    All you will need to do is to be aware that profit is maximised when marginal revenue is equal to marginal cost.

    If you watch my lecture you will see that I use the total revenue and total cost curves to explain why this is the case, but again you will never be asked to draw them.

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