profit maximization condition for a perfectly competitive firm.

In this video we will try to solve a question on the revenue maximization of a firm. .we are given a demand function at a cost function and we were told to find the level of output and price which maximizes the total revenue.
The goal of the firm is to maximise profit. Therefore, the firm would be in equilibrium only when it achieves profit maximisation. The total revenue (TR) function of the firm gives its total revenue as a function of the quantity of output sold (q), i.e., TR = TR(q).
The total cost (TC) function of the firm, on the other hand, gives us total cost as a function of the quantity of output produced (q), i.e., TC = TC(q).
There are two conditions for profit maximization
FIRST ORDER CONDITION
That is, if the firm is to obtain maximum profit, it would have to equate its MR and MC, or, it would have to remain at the point of intersection between its MR and MC curves.
SECOND ORDER CONDITION
The first order or the necessary condition for maximum profit is also the first order or the necessary condition for minimum profit. That is why there should be an additional condition that should be satisfied along with the FOC. This condition is called the second order condition (SOC) or the sufficient condition for profit maximisation.
according to the SOC for maximum profit under perfect competition, the firm’s MC curve should be upward sloping towards right at the MR = MC point (where the FOC for maximum profit has been satisfied)
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[@NimusiimaBeth]

Good explanation 👍👍👍👍👍👍

[@user-yu3mp2ci1f]

master i think you need to correct on that derivative of TC, your dropping the power of 3 not 2. thanks

[@tamamka6]

Good Morning Sir? Kindly help me in the following managerial economics questions A monopolist producing and supplying cooking gas to Mombasa City faces the demand function Q=8800-20P.Its cost function is given by TC =20Q+0.05Q2. (a)Determine the quantity of cooking gas she will produce and the price she will charge to maximise profits. (b)Determine her profit. (c)Show that if this monopolist in the long run is forced by anti monopoly authorities to operate like a perfectly competitive firm that it will produce more output,set the lower price and earn lower economic profit. (d)Illustrate and compute deadweight loss and lost of consumer surplus associated with her monopoly operations.

[@hamzaashfaq5394]

sir please continue making videos i and like me thousands of others love your explanation, i have no words for you

[@emmanuelchabinga4292]

This was well explained. Thank you

[@hamzaashfaq5394]

dear sir, I love your explanation hats off or you

[@anjanalimboo4471]

Sirjii thank you so much for all your efforts and support to us now it's Crystal clear for me to understand this problem💗much love from Sikkim stay blessed always

[@ECONMATHS]

Thanks for the appreciation. Please share this channel with your Economics friends. I'll appreciate that

[@debiada4336]

thanks so much I am now able to understand

[@Saurabh_183]

I can't explain how much you help me 🔥

[@ECONMATHS]

Thanks for the appreciation brother.

[@remiben1583]

Thank you Sir

[@hamzaashfaq5394]

very osm SIR, AT 7:50 I feel a situation of extreme cold😊, I think u are from Kashmir as I see your JUBA (A WINTER COAT WORE IN KASHMIR)

[@saadatbhatt2441]

Thank you so much sir 💕❤️

[@ECONMATHS]

My pleasure brother . Keep sharing this channel

[@seung-hwankim4410]

why you keep making mistakes