Measurement of Profit:
The firm’s profit might be stated as the difference among its total revenue and its total cost that is,
Profit = Total Revenue – Total CostThe goal of any firm is to maximize its profit that is to maximize the positive difference among the Total Revenue (i.e., TR) and Total Cost (i.e., TC). At that point the producer will be in balance.
Table: Maximizing Profits
From the table above it can be understood that the firm will earn maximum gain of $ 85 whenever it generates 6 units of output. Therefore the firm will be in equilibrium by generating 6 units of output.
Figure: Maximization of Profit
Its gain is the maximum at OM level of yield where the distance among the TR curve and the TC curve is the maximum. Whenever the firm generates OL level of output, and OH level of output, net revenue merely equals total cost (i.e., TR = TC). At such points, the firm is making neither profits nor losses. Therefore the points S and Q are termed Break-even points.
Latest technology based Economics Online Tutoring Assistance
Tutors, at the www.tutorsglobe.com, take pledge to provide full satisfaction and assurance in Cost and Revenue help via online tutoring. Students are getting 100% satisfaction by online tutors across the globe. Here you can get homework help for Cost and Revenue, project ideas and tutorials. We provide email based Cost and Revenue help. You can join us to ask queries 24x7 with live, experienced and qualified online tutors specialized in Cost and Revenue. Through Online Tutoring, you would be able to complete your homework or assignments at your home. Tutors at the TutorsGlobe are committed to provide the best quality online tutoring assistance for Economics Homework help and assignment help services. They use their experience, as they have solved thousands of Economics assignments, which may help you to solve your complex issues of Cost and Revenue. TutorsGlobe assure for the best quality compliance to your homework. Compromise with quality is not in our dictionary. If we feel that we are not able to provide the homework help as per the deadline or given instruction by the student, we refund the money of the student without any delay.
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!