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Week 1 – Discussion Question 2: Maximization of Profit
In economics, the assumpt
Week 1 – Discussion Question 2: Maximization of Profit
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?
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