{"id":227024,"date":"2025-09-05T14:39:07","date_gmt":"2025-09-05T09:09:07","guid":{"rendered":"https:\/\/www.oliveboard.in\/blog\/?p=227024"},"modified":"2025-09-05T14:52:52","modified_gmt":"2025-09-05T09:22:52","slug":"marginal-cost-marginal-revenue","status":"publish","type":"post","link":"https:\/\/www.oliveboard.in\/blog\/marginal-cost-marginal-revenue\/","title":{"rendered":"Marginal Cost &#038; Marginal Revenue Relationship with Exam Notes"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_77 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of content<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.oliveboard.in\/blog\/marginal-cost-marginal-revenue\/#Understanding_Definition_Rule\" >Understanding Definition &amp; Rule<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.oliveboard.in\/blog\/marginal-cost-marginal-revenue\/#Current_Trends_on_MC_and_MR\" >Current Trends on MC and MR<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.oliveboard.in\/blog\/marginal-cost-marginal-revenue\/#How_to_Write_This_in_a_10_Mark_Exam_Answer\" >How to Write This in a 10 Mark Exam Answer?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.oliveboard.in\/blog\/marginal-cost-marginal-revenue\/#Short_Numerical_Example\" >Short Numerical Example<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.oliveboard.in\/blog\/marginal-cost-marginal-revenue\/#Use-Cases_in_Real_Markets\" >Use-Cases in Real Markets<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.oliveboard.in\/blog\/marginal-cost-marginal-revenue\/#Take_the_10-Minute_MCMR_Quiz\" >Take the 10-Minute MC\/MR Quiz<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.oliveboard.in\/blog\/marginal-cost-marginal-revenue\/#FAQs\" >FAQs<\/a><\/li><\/ul><\/nav><\/div>\n\n<p>Understanding the Marginal Cost &amp; Marginal Revenue Relationship is crucial for economics aspirants and especially for candidates preparing for regulatory exams like RBI Grade B, SEBI Grade A, NABARD, IFSCA, and EPFO. In this blog, we\u2019ll cover the basics, connect them with current trends, and share exam-ready notes with examples, diagrams, and practice material.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Understanding_Definition_Rule\"><\/span>Understanding Definition &amp; Rule<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Marginal Cost (MC) and Marginal Revenue (MR) are fundamental concepts in microeconomics. They guide firms in making production and pricing decisions.<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Marginal Cost (MC):<\/strong> The extra cost of producing one more unit of output.<\/li><li><strong>Marginal Revenue (MR):<\/strong> The extra revenue earned by selling one more unit of output.<\/li><li><strong>Profit Maximisation Rule:<\/strong> A firm maximises profit when MR = MC.<\/li><\/ul>\n\n\n\n<p>In <strong>perfect competition<\/strong>, MR = Price, so equilibrium occurs at <strong>P = MC<\/strong>.<br>In <strong>monopoly\/oligopoly<\/strong>, MR &lt; Price, so equilibrium occurs at <strong>MR = MC but P &gt; MC<\/strong>.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Market Type<\/strong><\/td><td><strong>MR Curve<\/strong><\/td><td><strong>Profit Condition<\/strong><\/td><td><strong>Example Industry<\/strong><\/td><\/tr><tr><td>Perfect Competition<\/td><td>Horizontal line<\/td><td>MR = MC = P<\/td><td>Agriculture (wheat, rice)<\/td><\/tr><tr><td>Monopoly<\/td><td>Downward sloping<\/td><td>MR = MC &lt; Price<\/td><td>Railways, Pharma<\/td><\/tr><tr><td>Oligopoly<\/td><td>Kinked demand<\/td><td>MR = MC<\/td><td>Telecom, Airlines<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>To understand the relationship clearly, look at the MC\u2013MR equilibrium graph below. The intersection point shows where profit is maximized<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1200\" height=\"800\" src=\"https:\/\/www.oliveboard.in\/blog\/wp-content\/uploads\/2025\/09\/diagram1_mc_mr_equilibrium.png\" alt=\"Microeconomics graph showing MR curve intersecting U-shaped MC curve at equilibrium (MR = MC)\" class=\"wp-image-227026\"\/><\/figure>\n\n\n\n<div class=\"wp-block-buttons is-content-justification-center is-layout-flex wp-container-core-buttons-is-layout-16018d1d wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link\" href=\"https:\/\/www.oliveboard.in\/rbi-grade-b-pyqs\/?ref=contpp-aib\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Download RBI Grade B PYQs of 7 years&nbsp;<\/strong><\/a><\/div>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Current_Trends_on_MC_and_MR\"><\/span>Current Trends on MC and MR<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Today\u2019s markets show how MC and MR behave differently across industries:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Digital Goods:<\/strong> MC is almost zero (adding new users costs nothing), but server\/AI infra adds costs.<\/li><li><strong>Automation in Manufacturing:<\/strong> Robotics lower MC per unit, allowing larger production.<\/li><li><strong>Dynamic Pricing:<\/strong> Airlines and e-commerce adjust MR constantly using AI pricing.<\/li><li><strong>Subscription Models:<\/strong> MR is more stable due to recurring revenues.<\/li><\/ul>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Industry<\/strong><\/td><td><strong>MC Trend<\/strong><\/td><td><strong>MR Pattern<\/strong><\/td><td><strong>Example Case<\/strong><\/td><\/tr><tr><td>Digital Services<\/td><td>Near-zero<\/td><td>Stable (subscriptions\/ads)<\/td><td>Netflix, Spotify<\/td><\/tr><tr><td>Airlines<\/td><td>Moderate<\/td><td>Fluctuates with AI pricing<\/td><td>Emirates, Indigo<\/td><\/tr><tr><td>Automobiles<\/td><td>Declining (robots)<\/td><td>Volume-driven pricing<\/td><td>Tesla, Toyota<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>The bar chart below compares marginal costs across three major sectors: digital services, airlines, and manufacturing:<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1200\" height=\"800\" src=\"https:\/\/www.oliveboard.in\/blog\/wp-content\/uploads\/2025\/09\/chart2_mc_industries.png\" alt=\"Bar chart comparing marginal cost levels in digital services, airlines, and manufacturing industries.\" class=\"wp-image-227029\"\/><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_to_Write_This_in_a_10_Mark_Exam_Answer\"><\/span>How to Write This in a 10 Mark Exam Answer?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Examiners look for clarity, structure, and diagrams in answers. If you can explain MR\u2013MC in simple terms, support it with a diagram, and conclude with a rule, you can easily score 8\u201310 marks. Here\u2019s a model approach for exams like <a href=\"https:\/\/www.oliveboard.in\/rbi-grade-b-notification\/\" target=\"_blank\" rel=\"noreferrer noopener\">RBI Grade B<\/a>, <a href=\"https:\/\/www.oliveboard.in\/sebi-grade-a-notification\/\" target=\"_blank\" rel=\"noreferrer noopener\">SEBI Grade A<\/a>, <a href=\"https:\/\/www.oliveboard.in\/nabard-grade-a-notification\/\" target=\"_blank\" rel=\"noreferrer noopener\">NABARD<\/a>, UPSC Economics:<\/p>\n\n\n\n<ol class=\"wp-block-list\"><li><strong>Definition:<\/strong> Write short definitions of MC and MR.<\/li><li><strong>Graph:<\/strong> Draw MR curve (downward) + U-shaped MC curve, show MR = MC point.<\/li><li><strong>Explanation:<\/strong> Profit maximisation rule \u2014 equilibrium where MR = MC.<\/li><li><strong>Application:<\/strong> Give one current example (AI pricing, digital products).<\/li><li><strong>Conclusion:<\/strong> State that MR = MC is universal for profit maximisation.<\/li><\/ol>\n\n\n\n<p>In exams, you should always draw a labelled MR\u2013MC diagram. Here\u2019s an example of a standard exam-style graph.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1200\" height=\"800\" src=\"https:\/\/www.oliveboard.in\/blog\/wp-content\/uploads\/2025\/09\/diagram3_exam_mc_mr.png\" alt=\"Exam-style MR\u2013MC graph showing equilibrium at MR = MC with labelled axes.\" class=\"wp-image-227030\"\/><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\">Common Pitfalls to Avoid in Exams<\/h3>\n\n\n\n<ul class=\"wp-block-list\"><li>Confusing Average Cost (AC) with Marginal Cost (MC).<\/li><li>Assuming MR = Price in all markets (only true in perfect competition).<\/li><li>Forgetting to mention MC cuts MR from below at equilibrium.<\/li><\/ul>\n\n\n\n<p>Always conclude: <em>Profit maximisation occurs where MR = MC, provided MC is rising.<\/em><\/p>\n\n\n\n<div class=\"wp-block-buttons is-content-justification-center is-layout-flex wp-container-core-buttons-is-layout-16018d1d wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link\" href=\"https:\/\/www.oliveboard.in\/rbi-grade-b-2025-free-prep-kit\/?ref=contpp-aib\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Download RBI Grade B 2025 Free Preparation Kit<\/strong><\/a><\/div>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Short_Numerical_Example\"><\/span>Short Numerical Example<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Numbers make the concept crystal clear. A simple table showing cost and revenue at different output levels helps you see how MR = MC determines the profit-maximising point.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Quantity (Q)<\/strong><\/td><td><strong>Total Cost (TC)<\/strong><\/td><td><strong>MC<\/strong><\/td><td><strong>Total Revenue (TR)<\/strong><\/td><td><strong>MR<\/strong><\/td><td><strong>Decision<\/strong><\/td><\/tr><tr><td>9<\/td><td>\u20b9900<\/td><td>\u2013<\/td><td>\u20b91260<\/td><td>\u2013<\/td><td>\u2013<\/td><\/tr><tr><td>10<\/td><td>\u20b91020<\/td><td>\u20b9120<\/td><td>\u20b91320<\/td><td>\u20b960<\/td><td>MR &lt; MC \u2192 Don\u2019t expand<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>Here, profit is maximised at Q = 9 units, because beyond this MR &lt; MC.<\/p>\n\n\n\n<p>The following flowchart helps in making decisions about whether to expand or stop production depending on the MR and MC relationship.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1280\" height=\"1426\" src=\"https:\/\/www.oliveboard.in\/blog\/wp-content\/uploads\/2025\/09\/diagram4_flowchart_final4.png\" alt=\"\" class=\"wp-image-227045\"\/><\/figure>\n\n\n\n<div class=\"wp-block-buttons is-content-justification-center is-layout-flex wp-container-core-buttons-is-layout-16018d1d wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link\" href=\"https:\/\/www.oliveboard.in\/rbi-grade-b\/?ref=contpp-aib\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Explore RBI Grade B Online Courses<\/strong><\/a><\/div>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Use-Cases_in_Real_Markets\"><\/span>Use-Cases in Real Markets<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The MR\u2013MC principle is not limited to textbooks it drives real business strategies. From automation reducing marginal costs to digital platforms stabilising marginal revenue, firms use this relationship to set output and pricing decisions.<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Streaming Platforms:<\/strong> MC \u2248 0 \u2192 firms focus on revenue through ads &amp; subscriptions.<\/li><li><strong>Automobiles:<\/strong> Lower MC from automation \u2192 higher optimal production.<\/li><li><strong>Airlines:<\/strong> MR depends on seat pricing \u2192 AI maximises revenue.<\/li><\/ul>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Industry<\/strong><\/td><td><strong>MC Behaviour<\/strong><\/td><td><strong>MR Behaviour<\/strong><\/td><td><strong>Outcome<\/strong><\/td><\/tr><tr><td>Digital Apps<\/td><td>Near zero<\/td><td>Stable subscriptions<\/td><td>Focus on scaling users<\/td><\/tr><tr><td>Cars<\/td><td>Declining<\/td><td>Price competition<\/td><td>Higher production levels<\/td><\/tr><tr><td>Airlines<\/td><td>Moderate<\/td><td>AI dynamic pricing<\/td><td>Maximise per-seat profit<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>The line graph below highlights how automation lowers marginal cost over time, while subscription models keep marginal revenue relatively stable.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1200\" height=\"800\" src=\"https:\/\/www.oliveboard.in\/blog\/wp-content\/uploads\/2025\/09\/chart5_mc_vs_mr.png\" alt=\"Line graph comparing declining MC in automation industry vs stable MR in subscription models.\" class=\"wp-image-227032\"\/><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Take_the_10-Minute_MCMR_Quiz\"><\/span>Take the 10-Minute MC\/MR Quiz<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Test your understanding of Marginal Cost &amp; Revenue with mock tests that cover profit maximisation questions:<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Exam Name<\/strong><\/td><td><strong>Section Where It Appears<\/strong><\/td><td><strong>Mock Test Link<\/strong><\/td><\/tr><tr><td>RBI Grade B<\/td><td>ESI &amp; Microeconomics<\/td><td><a href=\"https:\/\/www.oliveboard.in\/rbi-grade-b-mock-test\/?ref=contpp-aib\" target=\"_blank\" rel=\"noreferrer noopener\">RBI Grade B Mock Test<\/a><\/td><\/tr><tr><td>SEBI Grade A<\/td><td>Paper 1: Economics Basics<\/td><td><a href=\"https:\/\/www.oliveboard.in\/sebi-grade-a-mock-test\/?ref=contpp-aib\" target=\"_blank\" rel=\"noreferrer noopener\">SEBI Grade A Mock Test<\/a><\/td><\/tr><tr><td>NABARD Grade A<\/td><td>Agriculture &amp; ESI<\/td><td><a href=\"https:\/\/www.oliveboard.in\/nabard-grade-a-mock-test\/?ref=contpp-aib\" target=\"_blank\" rel=\"noreferrer noopener\">NABARD Grade A Mock Test<\/a><\/td><\/tr><tr><td>IFSCA Grade A<\/td><td>Economics in Paper 2<\/td><td><a href=\"https:\/\/www.oliveboard.in\/ifsca-grade-a-mock-test\/?ref=contpp-aib\" target=\"_blank\" rel=\"noreferrer noopener\">IFSCA Grade A Mock Test<\/a><\/td><\/tr><tr><td>EPFO EO\/AO<\/td><td>Microeconomics Concepts<\/td><td><a href=\"https:\/\/www.oliveboard.in\/upsc-epfo-mock-test\/?ref=contpp-aib\" target=\"_blank\" rel=\"noreferrer noopener\">EPFO EO\/AO Mock Test<\/a><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"FAQs\"><\/span>FAQs<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<div class=\"schema-faq wp-block-yoast-faq-block\"><div class=\"schema-faq-section\" id=\"faq-question-1757062593580\"><strong class=\"schema-faq-question\">Q1. What is the Marginal Cost and Marginal Revenue relationship?<\/strong> <p class=\"schema-faq-answer\">A1. The relationship shows that profit is maximised where Marginal Cost (MC) = Marginal Revenue (MR). If MR > MC, production should expand; if MR &lt; MC, production should reduce.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1757062651250\"><strong class=\"schema-faq-question\">Q2. Why is MR = MC important in economics exams?<\/strong> <p class=\"schema-faq-answer\">A2. Because it is the universal profit maximisation rule, commonly asked in exams like RBI Grade B, SEBI Grade A, NABARD, and UPSC Economics.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1757062663549\"><strong class=\"schema-faq-question\">Q3. What happens if MR is greater than MC?<\/strong> <p class=\"schema-faq-answer\">A3. The firm earns extra profit by producing more, so output should be increased until MR = MC.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1757062673987\"><strong class=\"schema-faq-question\">Q4. Is MR = MC valid in monopoly as well?<\/strong> <p class=\"schema-faq-answer\">A4. Yes. In monopoly, profit is still maximised where MR = MC, but price (P) will be greater than MC.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1757062688033\"><strong class=\"schema-faq-question\">Q5. How should I write an exam answer on MR\u2013MC?<\/strong> <p class=\"schema-faq-answer\">A5. 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If MR > MC, production should expand; if MR &lt; MC, production should reduce.","inLanguage":"en-US"},"inLanguage":"en-US"},{"@type":"Question","@id":"https:\/\/www.oliveboard.in\/blog\/marginal-cost-marginal-revenue\/#faq-question-1757062651250","position":2,"url":"https:\/\/www.oliveboard.in\/blog\/marginal-cost-marginal-revenue\/#faq-question-1757062651250","name":"Q2. Why is MR = MC important in economics exams?","answerCount":1,"acceptedAnswer":{"@type":"Answer","text":"A2. Because it is the universal profit maximisation rule, commonly asked in exams like RBI Grade B, SEBI Grade A, NABARD, and UPSC Economics.","inLanguage":"en-US"},"inLanguage":"en-US"},{"@type":"Question","@id":"https:\/\/www.oliveboard.in\/blog\/marginal-cost-marginal-revenue\/#faq-question-1757062663549","position":3,"url":"https:\/\/www.oliveboard.in\/blog\/marginal-cost-marginal-revenue\/#faq-question-1757062663549","name":"Q3. What happens if MR is greater than MC?","answerCount":1,"acceptedAnswer":{"@type":"Answer","text":"A3. The firm earns extra profit by producing more, so output should be increased until MR = MC.","inLanguage":"en-US"},"inLanguage":"en-US"},{"@type":"Question","@id":"https:\/\/www.oliveboard.in\/blog\/marginal-cost-marginal-revenue\/#faq-question-1757062673987","position":4,"url":"https:\/\/www.oliveboard.in\/blog\/marginal-cost-marginal-revenue\/#faq-question-1757062673987","name":"Q4. Is MR = MC valid in monopoly as well?","answerCount":1,"acceptedAnswer":{"@type":"Answer","text":"A4. Yes. In monopoly, profit is still maximised where MR = MC, but price (P) will be greater than MC.","inLanguage":"en-US"},"inLanguage":"en-US"},{"@type":"Question","@id":"https:\/\/www.oliveboard.in\/blog\/marginal-cost-marginal-revenue\/#faq-question-1757062688033","position":5,"url":"https:\/\/www.oliveboard.in\/blog\/marginal-cost-marginal-revenue\/#faq-question-1757062688033","name":"Q5. How should I write an exam answer on MR\u2013MC?","answerCount":1,"acceptedAnswer":{"@type":"Answer","text":"A5. Define MC and MR, draw a neat graph showing MR = MC, explain the rule in 3\u20134 sentences, and conclude that equilibrium output is where MR = MC and MC is rising.","inLanguage":"en-US"},"inLanguage":"en-US"}]}},"_links":{"self":[{"href":"https:\/\/www.oliveboard.in\/blog\/wp-json\/wp\/v2\/posts\/227024","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.oliveboard.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.oliveboard.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.oliveboard.in\/blog\/wp-json\/wp\/v2\/users\/52"}],"replies":[{"embeddable":true,"href":"https:\/\/www.oliveboard.in\/blog\/wp-json\/wp\/v2\/comments?post=227024"}],"version-history":[{"count":6,"href":"https:\/\/www.oliveboard.in\/blog\/wp-json\/wp\/v2\/posts\/227024\/revisions"}],"predecessor-version":[{"id":227046,"href":"https:\/\/www.oliveboard.in\/blog\/wp-json\/wp\/v2\/posts\/227024\/revisions\/227046"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.oliveboard.in\/blog\/wp-json\/wp\/v2\/media\/227037"}],"wp:attachment":[{"href":"https:\/\/www.oliveboard.in\/blog\/wp-json\/wp\/v2\/media?parent=227024"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.oliveboard.in\/blog\/wp-json\/wp\/v2\/categories?post=227024"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.oliveboard.in\/blog\/wp-json\/wp\/v2\/tags?post=227024"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}