What is the difference betweeen short run and long run profit maximisation?

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RebelDreaming
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I don't get the concepts properly
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Chakram
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(Original post by RebelDreaming)
I don't get the concepts properly
The profit maximising point is said to be the point where marginal cost and marginal revenue equal each other (MC=MR). Marginal revenue is the increase in revenue after each additional unit and the same for marginal costs just with costs. When they equal this shows when the firm will make profits as the revenue is covering the costs. Firms tend to use long run profit maximisation when they are dominant in an industry and want to make the most money possible. However short run profit maximisation strategies might be used to make as much profit as possible for a certain period of time then switch to another strategy such as sales maximisation or revenue maximisation in order to gain market share.
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