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Profit Analysis of the Firm

Profit Analysis of the Firm. Profit Maximization for Total Measures. T ? is maximized: Where the slope of T ? is 0 (TR and TC are parallel or their slopes are equal) . d T ? / dQ = M? = 0 2 such points (Q 1 , Q 3 ) require: 2. d 2 T ? / dQ 2 is negative or max TR - TC => Q* = Q 3.

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Tr tc tvc tfc - PowerPoint PPT Presentation

Profit Analysis of the Firm