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Economics is a study of money and wealth. Economics is that branch of study that determines the production, consumption and distribution of money. Divided into two branches: macroeconomics and microeconomics, macroeconomics is a study of the entire nation as a whole while microeconomics is the study concerning an individual.
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What is profit maximum in economics? Learn how we are helpful in profit maximum in monopoly assignment help.
Let us look at the profit maximization in a monopoly with the help of the diagram below:
Profit = total revenue – total cost
The profit maximization occurs when the difference between the total revenue and total cost is the biggest.
The firm could maximize their profits if the output produced where marginal revenue (mr)= marginal cost (mc).
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