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Profit.de

Profit.de Process to determine the highest profits for a firm. In economics, profit maximization is the short run or long run process by which a firm may determine the price, input and output levels that will lead to the highest possible total profit (or just profit in short). In neoclassical economics, which is currently the mainstream approach to microeconomics, the firm is assumed to be a "rational agent" (whether operating in a perfectly competitive market or otherwise) which wants to maximize its total profit, which is the difference between its total revenue and its total cost. Measuring the total cost and total revenue is often impractical, as the firms do not have the necessary reliable information to determine costs at all levels of production. Instead, they take a more practical approach by examining how small changes in production influence revenues and costs. When a firm produces an extra unit of product, the additional revenue gained from selling it is called the marginal revenue ( MR {\displaystyle {\text{MR}}} ), and the additional cost to produce that unit is called the marginal cost ( MC {\displaystyle {\text{MC}}} ). https://en.wikipedia.org/wiki/Profit_demand
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