Comment Re:He is largely correct (Score 1) 98
Where the curves cross is the highest profit the seller can get away with. This is precisely how the curves are defined.
I'm going full off-topic pedant here, but that's not right. If the demand curve is very flat (almost horizontal), then a large increase in price will create almost no drop in demand, which gives a huge gross-margin boost. Extreme example of this is Pharma Bro / Martin Shkreli bumping the price of Daraprim by like 50x, because people would pay anything to stay alive (which Shkreli brazenly bragged about).
The crossing of the two curves indicates the point of maximum product/units that could be sold, not maximum profit.