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By defining profit in general terms as the difference between total revenue and total costs, profit maximization involves the following expression:

Equation (1)

Π = TRTC

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2. OBJECTIVES OF THE FIRM
fit from different perspectives. The starting point for anyone who is doing profit analysis is to have a solid grasp of how various forms of profit are defined and how to interpret the profit based on these different definitions. <span>By defining profit in general terms as the difference between total revenue and total costs, profit maximization involves the following expression: Equation (1)  Π = TR – TC where Π is profit, TR is total revenue, and TC is total costs. TC can be defined as accounting costs or economic costs, depending on the objectives and requirements of the