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So what is profit?
Profit can be defined as the excess of total revenue over total cost during a specific period of time. Total revenue being the quantity of output produced times the selling price of a single output and total cost being the quantity of output produced times the cost of a single output.
In order to achieve maximum profit, oil sellers have to determine the best combination of price and quantity that generates the biggest profit.
A commonly used method is the use of the marginal cost (MC)-marginal revenue(MR) principle. As noted above, marginal profit equals marginal revenue minus marginal cost...
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Common topics in this essay:
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