Thursday, November 3, 2016

183. "Rules" of profit maximisation

The “rules” referred to in the question “The goal of any firm is to maximise profit, discus the two rules of profit maximisation for a firm (15 marks)” Are: Where MR intersects MC (MR-=MC) in the supply curve of the firm. And the “shut down” (or close down point) – where MC intersects the AVC (average variable cost). If you need further explanation – talk to me.

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