E Pro it Maximization 33' 1' Revenue, Variable Casts Labour Input, Nd {upwlhl :0 Ill Fwscn CHIN: Inc. I Y = 2F(K, Nd) is the firm's revenue, while WNd is the firm's variable cost. Profits are the difference between the farmer and the latter. The firm maximizes profits at the point where marginal revenue equals marginal cost, or MPH = w. Maximized profits are the distance AB, er the distance ED