A monopolist needs to maximize profit, and income = complete revenue - complete costs. So, d(TR)/dQ−d(TC)/dQ=0 is the identical as d(TR)/dQ=d(TC)/dQ , which is the equal as MR = MC.
A monopolist can determine its profit-maximizing price and volume with the aid of analyzing the marginal income and marginal costs of producing an greater unit. If the marginal income exceeds the marginal cost, then the firm need to produce the more unit.
The marginal income is the additional revenue added by using increasing the quantity. This is also regarded as the extra income “at the margin.” Therefore, earnings is maximized when marginal price equals marginal income which is the identical as saying when marginal profit equals zero.
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