Economics A-Level
Profit-maximising rule
What Profit-maximising rule means in Economics A-Level, as defined for AQA.
Definition of Profit-maximising rule
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Reference: AQA
A firm will maximise its total profit, or minimise its losses, at the output level where marginal cost equals marginal revenue.
Topics that use Profit-maximising rule
- The objectives of firms (AQA A-Level)
Related terms
- Bounded rationality
- Business objectives
- Corporate governance
- Corporate social responsibility
- Firm performance and efficiency
- Marginal cost
- Marginal revenue
- Principal-agent problem
Using Profit-maximising rule in the exam
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