Why is the equality of marginal revenue and marginal cost essential for profit maximization in all market

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Why is the equality of marginal revenue and marginal cost essential for profit maximization in all market structures? Explain why price can be substituted for marginal revenue in the MR = MC rule when an industry is purely competitive.

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Economics

ISBN: 978-0073375694

18th edition

Authors: Campbell R. McConnell, Stanley L. Brue, Sean M. Flynn

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Question Posted: May 23, 2013 07:45 AM

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Why is the equality of marginal revenue and marginal cost essential for profit maximization in all market

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If the last unit produced adds more to costs than to revenue its production must necessarily ...View the full answer

Economics

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