The simplified profit maximization equation is
A) Profit = Revenue - Cost
B) Profit = Revenue + Cost
C) Profit = Revenue/Cost
D) Profit + Revenue x Cost

Question

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The simplified profit maximization equation is Profit = Revenue - Cost, which means to maximize profits, a company needs to increase revenue and/or decrease costs. This equation is widely used in business and economics to determine the optimal level of production and pricing strategy.

The Simplified Profit Maximization Equation Is