Question

with full explanations..​

Answer 1

Answer:

hey dear ....

Let us take π = total profit

$TR = total revenue$

TC = total cost .

d = differential (small increase or decreased

Q = quantity produced or sold.

We know: π = TR – TC

Or, dπ/dQ = dTR/dQ = dTC/dQ

But, total profit is maximum when marginal profit is zero or when

Dπ/dQ = 0

From the above equation then total profit is maximum when

dTR/dQ = dTR/dQ = 0

Or, dTR/dQ = dTC/dD

nice

Here, dTR/dQ is MR, dTC/dQ is MC

Or, MR = MC

It shows that the total profit is maximum when MC = MR.