Week 2_4 Profit Maximising Output for Firm in Perfect Competition

Step 1:

Get to know Basic Concepts:

-- The firm can use marginal analysis to determine the profit-maximizing output.

-- Marginal cost indicates additional cost of producing one more unit.

-- Marginal revenue indicates additional revenue of one more unit sold.

Step 2:

Question:

Look at this scenario, how can we use marginal analysis to calculate a firm's profit-maximizing output level from given data?

Discuss with fellow students in Discussion Forum.

Step 3:

Watch the Video: