Section 2: The economist' s model Assumption a company is seen as producing one product only a company is to MAXIMISE PROFITS decision variable-- the level of product output To find the level of output, q the DECISION VARIABLE that maximises profit( the OBJECTIVE FUNCTION ) within the particular confines of the revenue and cost conditions which it facesSection 2 : The Economist's Model ◼ Assumption ❑ company is seen as producing one product only ❑ company is to MAXIMISE PROFITS ❑ decision variable-- the level of product output ◼ To find the level of output , q ( the DECISION VARIABLE ) , that maximises profit ( the OBJECTIVE FUNCTION ), within the particular confines of the revenue and cost conditions which it faces