economics w4 dq1

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Why is the equality of marginal revenue and marginal cost essential for profit maximization in all market structures? Explain why price can be substituted for marginal revenue in the MR = MC rule when an industry is purely competitive.

Note: Answer should be minimum of 300 words excluding references. Responses are original in content and with minimum of one external reference. Reference are used properly and cited properly.

Requirements for the Discussion Question:

Forums Guidelines Criteria

Requirements

Quality Guidelines (50%):

  • All discussion questions are answered completely.
  • Responses are original in content with a minimum of one external reference.
  • All posts demonstrated analysis of the topic.

Participation Guidelines (30%):

  • Main response is no less than 300 words.

Clarity, Organization & Professionalism Guidelines (20%):

  • Responses were organized and logical.
  • No spelling or grammatical errors.
  • References were used and cited properly.

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