Why profit is Maximized when MR = MC when the last unit doesn't produce any profit at all?

Question

example last unit mr = 5 and mc = 5 ..it does not make profit at producing at last unit?

can give more details answer please.thanks!

Answer 1

Each unit produced beyond that point will not make more money.

Answer 2

Because:

1. It's a lot easier to just remember MR=MC than it is to remember the point right before MR=MC.

2. x+0=x. That unit at MR=MC is still not going generate a loss, so profit will still be at its max.

3. It's just based on an economic model. A real business situation might not have a realistic quantity at MR=MC (you're not going to make a partial unit), but it's a decent learning method.

Answer 3

Because you don't know that the last unit made you no profit until you actually produce it.