350 Words2 Pages

egt1 task 1
A.
Explaining profit maximization from the approach of total revenue to total cost is by taking the total revenue to the total cost that relies on the fact that the profit would equal revenue minus the cost and would focus on the point of profit maximization. So this means that profit maximization will be achieved when total revenue to total cost has the largest gap between the two.
Explaining profit maximization by the approach of marginal revenue to marginal cost, you would have to take marginal revenue minus the marginal cost to get the marginal profit or when you see that marginal revenue equals marginal cost then that is where profit maximization

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