Marginal Revenue, Marginal Cost, and Profit maximization a Determining the profit maximizing level of output ● Profit(兀)= Total Revenue- Total Cost ● Total Revenue(R)=Pq ● Total cost(C)=Cq e Therefore 丌(q)=R(q)-C(q) Chapter 8 Slide 12Chapter 8 Slide 12 Marginal Revenue, Marginal Cost, and Profit Maximization ◼ Determining the profit maximizing level of output ⚫ Profit ( ) = Total Revenue - Total Cost ⚫ Total Revenue (R) = Pq ⚫ Total Cost (C) = Cq ⚫ Therefore:   (q) = R(q) −C(q)