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In economics, the assumption of maximization of profit explains the behavior of a firm. Profit is defined as total revenue minus total cost and profit
In economics, the assumption of maximization of profit explains the behavior of a firm. Profit is defined as total revenue minus total cost and profit is maximized at the production level where total revenue exceeds total cost by the largest margin. At what level of production would firm profit be maximized? Would profit be maximized by producing the optimal output or the maximum output? Please provide references with website links.
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