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Revenue, cost, and the profit-maximising rule

Revenue, cost, and the profit-maximising rule

Firms compare revenue with cost, but they also care about what happens when output changes by one unit. Total profit is TR−TCTR - TCTR−TC, and total cost includes opportunity cost as well as explicit spending.

3.3.4 Normal profits, supernormal profits and losses Lesson

  1. A Level
  2. /Economics
  3. /3.3.4 Normal profits, supernormal profits and losses