Principles of Microeconomics / Unit 7 MIC 0607 short lesson, about 20 seconds
The Marginal Rule: MR = MC
Captions available
The idea
Produce every unit whose marginal revenue is at least its marginal cost and no unit beyond. For a price taker that is produce until marginal cost rises to the price.
In practice
While the next flat costs less than thirty dollars, grow it; when it costs more, stop.
Where people slip
The rule finds the quantity, not the profit. Profit is read afterward against average cost.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
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