Marginal Cost and Marginal Revenue - PowerPoint PPT Presentation

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Marginal Cost and Marginal Revenue

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  1. Marginal Cost and Marginal Revenue $ C’ < R’ R’ = C’ R’ > C’ R R’ > C’ R’ > C’ C C R Maximum ProfitR’ = C’ C > R, Loss C > R, Loss R > C, Profit

  2. $ R C C Max Profit, P’ =0 then R’ = C’ R P=R-C Break Even, P =0 then R = C Cost, Revenue and Profit R > C, Profit C > R, Loss C > R, Loss