Explore AR, MR, AC and MC curves. Compare profit maximisation, revenue maximisation and sales maximisation. Built for Edexcel and AQA A Level Economics.
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Steeper = more inelastic demand
At profit-maximisation output Q* = 35.2, the firm charges P* = £64.8 and is earning supernormal profit of £1197 (AR > AC by £34.0 per unit). MC = MR at this point, so no further output change increases profit.
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