Profit Maximisation Hypothesis of Traditional Economic …
Profit maximization - Wikipedia
Set profit to equal revenue minus cost. For example, the revenue equation 2000x – 10x2 and the cost equation 2000 + 500x can be combined as profit = 2000x – 10x2 – (2000 + 500x) or profit = -10x2 + 1500x – 2000.
Profit Maximisation Hypothesis Free Essays - StudyMode
Calculate the maximum profit using the number of units produced calculated in the previous step. In this example, inserting x = 75 into the profit equation -10x2 + 1500x – 2000 produces -10(75)2 + 1500(75) – 2000 or 54,250 in profit.
That’s how to find the maximum profit in calculus!