Profit Maximisation
Profit Maximisation
The traditional theory of the firm assumes that firms aim to maximise total profit. Profit is the difference between total revenue and total cost:
Step-by-step lessons covering AQA A Level Economics 1.5.2 The objectives of firms for A Level Economics. Each lesson works through exam-style questions in Paper 1, Paper 2 and Paper 3 format. Start with the core supply-and-demand models before moving on to the more evaluation-heavy macroeconomic policy topics.