Profit-Maximization ROy=ply)y cly y y Ily)
Profit-Maximization $ R(y) = p(y)y c(y) y (y) y*
Profit-Maximization ROy=ply)y cly y y Ily)
Profit-Maximization $ R(y) = p(y)y c(y) y (y) y*
Profit-Maximization ROy=ply)y cly y y Ily)
Profit-Maximization $ R(y) = p(y)y c(y) y (y) y*
Profit-Maximization ROy=ply)y cly y y At the profit-maximizing output level the slopes of the revenue and total cost II(y) curves are equal; MR(y*)=Mc(y*)
Profit-Maximization $ R(y) = p(y)y c(y) y (y) y* At the profit-maximizing output level the slopes of the revenue and total cost curves are equal; MR(y*) = MC(y*)
Marginal revenue Marginal revenue is the rate-of-change of revenue as the output level y increases MR(y)=(p(y)y)=p(y)+y ap(yy d
Marginal Revenue Marginal revenue is the rate-of-change of revenue as the output level y increases; MR y ( ) d dy p y y p y y dp y dy ( ) ( ) ( ) ( ) = = +