1. Home
  2. /
  3. Glossary
  4. /
  5. Profit maximization

Profit maximization

Profit maximization occurs at the output level where the marginal cost (MC) equals the marginal revenue (MR), that is, MC = MR.

Where this appears

The syllabus topics that use this term.

  • 2.4Alternative Business Objectives
  • 2.4Profit Maximization
  • 2.11Allocative Efficiency and Welfare Loss
  • 2.11Degrees of Market Power

Taught in Critique of the Maximizing Behaviour of Consumers and Producers

All 809 terms
IBonomics Logo

IBonomics

Comprehensive study materials and practice quizzes for IB Economics students aiming for 6–7 scores. Created by tutors, for students.

Contact Us

Follow IBonomics

All social links

Quick Links

  • Search
  • Exam Overview
  • Practice Quizzes
  • Unit-Based Quizzes
  • Sign Up
  • Become a Tutor
  • Contact
  • Announcements

Study Resources

  • Microeconomics
  • Macroeconomics
  • Real-World Examples
  • International Economics
  • IA Guide
  • Mock Exams
  • Flashcards
  • Economics Briefs
  • Find a Tutor

Legal & Policies

  • Privacy Policy
  • Cookie Policy
  • Disclaimer
Official Resources
IB Organization

© 2026 IBonomics. All rights reserved.

Created by tutors for students. Not affiliated with the International Baccalaureate Organization.