where is the number of units produced.
Because , where is the price when n units are
sold, Condition 22.6 may be rewritten as
- Using elementary calculus, we may prove Rule 2.
each of which is a function of output Q. To maximize π, it is
necessary that
From the definitions,
From Equations 23.1 and 23.2 , a necessary condition for
attaining maximum is , or , as is
required by Rule 2.
TQRn ≥
n
TVCn
Qn
[22.6]
Qn
TRn=Qn×pn pn
pn≥AVCn
πn=TRn−TCn
ddQπ =^0
[23.1]
ddQπ = ddTQR − ddTQC =MR−MC
[23.2]
π MR−MC= 0 MR=MC
