8.3 Marginal Revenue,Marginal Cost, and Profit Maximization Profit-Difference between total revenue and total cost. 元=R(q)-C(q) Marginal revenue-Change in revenue resulting from a 1 unit increase in output. A firm chooses output q*,so that profit,the difference AB between revenue R and cost C,is maximized. At that output,marginal revenue (the slope of the revenue curve) is equal to marginal cost (the slope of the cost curve).8.3 Marginal Revenue, Marginal Cost, and Profit Maximization ❑ Profit - Difference between total revenue and total cost.  = R(q) – C(q)  Marginal revenue-Change in revenue resulting from a 1 unit increase in output. A firm chooses output q*, so that profit, the difference AB between revenue R and cost C, is maximized. At that output, marginal revenue (the slope of the revenue curve) is equal to marginal cost (the slope of the cost curve)