Episode 26B: Maximizing Profits

How does a firm know how much output to produce to get the maximum profit?
"Episode 26B: Maximizing Profits" by Dr. Mary J. McGlasson is licensed under a Creative Commons Attribution-NonCommercial-NoDerivs 3.0 Unported License.

[@h.cazador]

10 years later and these videos are still better than modern college lectures. My prof takes 2 hours to explain simple concepts like these. I learn it here in a few minutes.

[@josephvarner6564]

You know why can't textbooks every explain concepts like this in a very simple understandable way. I so appreciate these videos because they explain in simple language and terms the concepts I need to understand. Great job and thanks for putting this stuff on youtube for us.

[@chelseat183]

I am so happy my microeconomics teacher recommended these videos. I would be lost without them.

[@seandaly]

You'll probably never read this - but these videos are extremely clear, concise and well spoken. I rarely comment on videos but I feel obliged to say thank you!

[@omarsmith8064]

this actually makes studying interesting, grateful for such videos

[@DanCarq]

Thank you so much for uploading these videos, I'm in my first upper level economics class and I probably would have bombed my final if you didn't clarify these topics for me. Your illustrations complement the material perfectly- you're great at teaching

[@math_the_why_behind]

Thanks for the breakdown of why MR = MC for maximum cost. :)

[@rizmacadillac]

Always good to review college lectures

[@Vibestr]

woooow...this took me forever to understadn until i saw your breakdown. thank you so much

[@thecleener]

wow this is straightfoward and clear!!! love it

[@egorka2201]

thank you 10000 times from germany xD doing the Bachelor in the first semestre right now and this vid helped me a lot

[@dbjbot]

This video is fantastic!!! I now understand why MR = MC. Thank you thank you thank you

[@logicalrishi]

Brilliant, loved your way of teaching,

[@nahsirah]

awesome, most clear way i have seen this concept explained.

[@KarasuInaiga]

MR=MC for the most recently added unit of output, or MR=MC for the next unit of output that could be added?

[@KImberley9able]

Extremely helpful !

[@evagreta7832]

Well explained! :)

[@czarnaski]

easy, clear, just wonderful

[@dabear185]

Thank you for the post! This was very helpful

[@vladpenteleychuk4347]

AMAZING!

[@shilpapeswani]

Thanks, excellant work

[@callmesanto]

tomorrow i am having exam, this thing is goin in my mind.....thanks alot

[@DuyenPham-kb6bi]

Very useful. Thank you

[@Slimnplatinum]

Great vids

[@leozarni9570]

Hey, can someone explain to me why MC = AC because in the video, she substituted T/Q = AC with MC at the last part of the video, and it's confusing me?

[@chris91199199]

you have a delightful voice :)

[@cashphattichaddi]

Brilliant!!!

[@cskman]

Good teacher!

[@kenshin4888]

thank you so much.

[@spirituelconnexion]

cant thank you enough !!

[@vasilkirilov5445]

Why if MR is higher than MC is not good? i didn't get that, sry

[@RevorML]

Because you can still make (even) more money if you have more costs.

[@saadsmahmood]

It's not that MR higher than MC is bad, rather if you have MR equal to MC you earn more profit overall which is better then earning less profit.

[@arifulsohag1782]

can anyone help me solving this question please L & M plc. produces a product which it currently sells for £79 per unit. The company sells 450 units at this price and wants to make sure that it maximises its profit. They have done some market research which shows that a change in price of £3.75 will cause a change in sales of 25 units. Fixed costs are £700 for the period. The variable cost of producing a unit is £22. Required: a) Calculate the Optimum Selling Price and Quantity that will be sold at this price. b) The total profit at the price calculated in a) above.

[@NeVerFinishAnyth]

why are you asking in a youtub comment section? but it's been 4 months and well you dont have infomation of the market structure NOR did you give info on the cost or marginal profits you JUST gave the revenue . since you specified the quantity it becomes even harder to answer because the general rule of thumb is that he should MAKE as much to get marginal costs = revenue

[@shoexy]

What is profit-maximization assumption ?

[@CuteChadz]

Thanks!

[@satnamgur1qmcarwaheg]

shutting in the short run ?

[@tenzyangz]

Yu r awesome :)

[@Mon1Dieu1et1moi]

tres bien!!!

[@vnought]

I LOVE YOU!

[@miguelaugustus726]

Good...

[@MikhaelAhava]

Good...

[@Mishu1434]

its simply best

[@fbibarbie]

Cause no one gets any utility units from clicking the like button.

[@bonanlin4972]

So is everyone watching this video is taking economics?

[@vlfavourites]

Ooooooooooooh :o