4.1.5 Flashcards
1
Q
when will profit maximisation occur
A
when marginal cost = marginal revenue
2
Q
what is marginal cost
A
the cost of producing one more unit
3
Q
what is marginal revenue
A
revenue from selling one more unit
4
Q
how is supernormal profit shown on a graph
A
Its the difference between marginal revenue and the average revenue
5
Q
when does revenue maximisation occur
A
it occurs when marginal revenue = 0
6
Q
when does sales maximisation occur
A
when average revenue = average cost