<p>I think that at the point that Price=MC, we obtain optimal customers.</p>

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2024-05-12T18:57:01.007Z
2024-05-12T18:57:01.007Z
Murat Yazıcı
<p><a href="https://i.sstatic.net/Yj7z9lCx.jpg" rel="nofollow noreferrer"><img src="https://i.sstatic.net/Yj7z9lCx.jpg" alt="AC and MC cost curves" /></a></p>
<p>This graph indicates Marginal cost (MC) and Average cost (AC) curves to obtain customers. AC is increasing because MC is increasing. It is seen that the decreasing return to scale because MC has higher slope than the AC.</p>
<p>Presume firms are maximizing long-run profit, the price is given by the market, and there are no barriers to entry. MC and AC curves are increasing, what is the optimal number of customers?</p>
<p>With above rules, to be in profit, Price must be higher than AC. In addition, the Price must equal to MC for maximizing long-run profit. Because the price is given by the market, it is constant.</p>
<p>In this case, how do optimal number of customers is calculated?</p>

<microeconomics><profit-maximization><cost-functions>
To find optimal number of customers in fully competitive market with both MC and AC increasing?
Murat Yazıcı
# To find optimal number of customers in fully competitive market with both MC and AC increasing?

(Asked by: username_0 on 2024-05-10)

[![AC and MC cost curves](https://i.sstatic.net/Yj7z9lCx.jpg)](https://i.sstatic.net/Yj7z9lCx.jpg)

This graph indicates Marginal cost (MC) and Average cost (AC) curves to obtain customers. AC is increasing because MC is increasing. It is seen that the decreasing return to scale because MC has higher slope than the AC.

Presume firms are maximizing long-run profit, the price is given by the market, and there are no barriers to entry. MC and AC curves are increasing, what is the optimal number of customers?

With above rules, to be in profit, Price must be higher than AC. In addition, the Price must equal to MC for maximizing long-run profit. Because the price is given by the market, it is constant.

In this case, how do optimal number of customers is calculated?

**Tags:** microeconomics, profit-maximization, cost-functions

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## 1 answers

### Answer by username_0 on 2024-05-12. Score: 0

I think that at the point that Price=MC, we obtain optimal customers.


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