Answer to Question #99222 in Microeconomics for Jordan

Question

How do I get the profit at the profit maximizing point from a graph?

Answer 1

The profit maximizing is the point where MC (marginal cost) intersects with MR (marginal revenue) or P (profit). At this point MC=MR=P. The point is identified using coordinates (x, y) where x is the output quantity and y is the marginal cost or marginal revenue at that point. Therefore, the profit P=MC or P=MR.