Firm's Profit Equation (Π = PQ - C(Q))
A firm's economic profit (Π) is determined by its total revenue minus its total cost. The formula for this is Π = P*Q - C(Q), where P represents the price, Q is the quantity of output, and C(Q) is the total cost function. A firm's central goal is to select a combination of price and quantity to make this profit as high as possible.
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CORE Econ
Ch.7 The firm and its customers - The Economy 2.0 Microeconomics @ CORE Econ
The Economy 2.0 Microeconomics @ CORE Econ
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