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Profit Maximization Calculator

Find optimal production level for maximum profit

Cost Structure

Revenue Structure

Profit Maximization Results

Marginal Revenue: $0.00
Marginal Cost: $0.00
Optimal Quantity: 0 units
Total Revenue: $0.00
Total Cost: $0.00
Maximum Profit: $0.00
Profit Margin: 0%

Understanding Profit Maximization

Profit Maximization Rule: Produce where Marginal Revenue (MR) equals Marginal Cost (MC).

Perfect Competition: MR = Price (constant), so produce where MC = Price.

Economic Profit: Total Revenue minus Total Cost, including opportunity costs.

Break-Even Point: Where Total Revenue equals Total Cost (zero economic profit).

Shutdown Point: Where price falls below average variable cost - firm should cease production.