Answer:
Profit Maximisation
Step-by-step explanation:
Profit is the difference between total revenue (receipts) from sale & total cost (expenditure) on production.
Total Revenue = Price x Quantity ; Total Cost = Average Cost x Quantity
Economists study all the producer behaviour, based on assumption that : Goal of firm is Profit Maximisation.
Maximising Profit implies maximising the difference between Total Revenue & Total Cost [ TR - TC] . This further leads to producer equilibrium rule of Marginal Revenue = Marginal Cost [MR = MC] ; i.e additional revenue per unit sold equals additional cost per unit production.