Cost & Revenue Analysis... Continued

Profit Maximization
In the market place, profit is maximized where the difference between TR and TC is widest.

Supposing the price P is 950 as discussed above and the total costs TC (explicit + implicit) are given as in table 3.3 below, we can determine the profit maximization level by increasing quantity from one unit onwards to see where the difference between TR and TC (or TR-TC) is widest.