Learning Goal: I’m working on a economics question and need the explanation and answer to help me learn.
In economics, the assumption of maximization of profit explains behavior of firm. Profit is defined as total revenue minus total cost and profit is maximized at the level of production where total revenue exceeds total cost by the largest margin. At what level of production would firm profit be maximized? Would profit be maximized by producing the optimal output or the maximum output? Two responses by the end of the week.
