#3-1-profit-maximization #cfa-level-1 #economics #microeconomics #reading-15-demand-and-supply-analysis-the-firm #section-3-analysis-of-revenue-costs-and-profit #study-session-4
There are three approaches to calculate the point of profit maximization.
Third approach compares the revenue generated by each resource unit with the cost of that unit.
Profit contribution occurs when the revenue from an input unit exceeds its cost.
The point of profit maximization is reached when resource units no longer contribute to profit.