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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