chapter  11
DEMAND, REVENUE AND PROFIT MAXIMIZATION
Pages 19

Having discussed the relationship between a firm’s output and its costs, we can begin to turn our attention towards the firm’s output decision. In this chapter we will concentrate exclusively on the decisions of a profitmaximizing firm, but, since the firm’s profits are the difference between its revenue and costs, we must first of all consider the determinants of the revenue arising from the firm’s activities and thus the determinants of its revenue function.