A2/IB Why is MC=MR Profit Maximisation?

Thankyou! This was really helpful

i love you pls come and teach at my school

how did you show that TR is maximum at the intersection point of MR and MC

Thank you brilliant video, I hope you are going to be a teacher one day or already are one

Thank you so much Sir😊

Bro filmed this on his ds.

This was an amazing clarification of a concept people often misunderstand! Thank you so much!!!

Explained it wayyyyyyyyyy better than the book thank you so much!!!!

Brilliant

It is helpful to think of it as maximizing profit as a function of the quantity. To maximize, we would set its derivative with respect to quantity to 0. Well since Profit = TR - TC, its derivative with respect to quantity would be MR - MC. Which means that profit is maximized at MR - MC = 0, which means MR = MC

Thank you!!!!

does a firm stop producing at mc=mr, also mc=mr means the cost of making 1 extra good is the EXACT same as the revenue gained from that good right?? someone please help.

Okay.THIS<<< what I was looking for whole internet and found here.thanks a lot..

This was so helpful and informative. Thank you so much!

wow okay he really just explained that so easily

Please look into echo. Thanks for sharing

Finally, someone explains it in a way I can understand it

Man, that was so very helpful! thank you!

what the fuck am i doing here, i was looking for thermodynamics

So mr=mc isn't just breaking even?

You look like vikkstar nice

This video is so helpful. I finally got it after a month lol

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Thank u so much
Ur explanation was really good
Provided me in depth understanding of the why behind the what

What I know is :- When MR = 0 , TR is at Max.

Too echoey i cant hear you mate
U might sound better with a body mic

thanks a lot, i have understood fully now

what if i take the derivative on both sides of Profit= TR-TC with respect to quantity, then set the derivative of profit to 0, as if that's case, its either max or min profit, then we get 0=MR-MC as the gradients MR,MC are the derivatives to TR and TC, then we get MR=MC

👏👏👏

But isn’t sales revenue maximized at MR=0, it doesn’t hit the highest point of the TR curve...

ty u r a beast... i understand now

Succinctly explained. Thank you.

thanks that made me understand it a lot better. All i really needed to know was the difference between current profit and potential total profit. Now i know y

"when we are maximising profit we are trying to maximise the total level of profit...therefore we should do is by increasing output further by moving output closer to MC=MR." This part is quite confusing, because you did not specifically explained what MC=MR means at that point, instead it's better to just explain as "the firm is producing too little and can increase profit by increasing output despite the fact that marginal revenue is falling"

great video

You da bomb

if anyone in my Economic class finds this comment, I will buy u a large domino pizza !!

what a good video

Thank you so much!

hello sirr thnk u so much for the vid, but can u help explain why when MR = 0, TR is not at its max ?? 😫😭😭😭 im confuse

the revenue maxmisation point is MR = 0 so why is total revenue peaking at MC = MR? Shouldnt the TR curve continue to go up until MR = 0 and then decline, whole TC also increases at a faster rate?

thank you for explaining!

Thank You Very Much!!!

Dear sir,

how to maintain the maximize profit?

It was Reallyyyyy helpful mate !!!

squad

Who on earth disliked this video! Many thanks again!

Love the video!

Perfectly made sense to me! great explanation with such understandable grapes.