Maximizing profits also means that a firm is attempting to:

Question

Quizplus · Accepted Answer

Maximizing profits means producing at the output level where the difference between total revenue and total cost is the greatest. This is because at this level, the firm is earning the highest possible profit. Making as much output as possible or changing the market price may not necessarily lead to maximizing profits, and producing below its break-even price would result in losses, not profits.

Maximizing Profits Also Means That a Firm Is Attempting To