TERMIUM Plus®

The Government of Canada’s terminology and linguistic data bank.

MAXIMUM PROFIT EQUILIBRIUM [1 record]

Record 1 2015-03-02

English

Subject field(s)
  • Productivity and Profitability
  • Corporate Economics
OBS

... its [a competitive firm's] Maximum-profit equilibrium comes when it follows the rule Price=Marginal Cost or P=MC

OBS

... any firm-monopolistic or competitive-will find its Maximum-profit equilibrium by nicely balancing its extra cost against its extra revenue (i.e., by finding an intersection of its Marginal Cost curve and what will be defined as its "Marginal Revenue" curve.

OBS

Maximum-profit equilibrium is where Marginal Revenue and Marginal Cost are equal. MR=MC, the Maximum-profit point.

French

Domaine(s)
  • Productivité et rentabilité
  • Économie de l'entreprise

Spanish

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