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profit function
[profit function|profit function] is the difference between revenue and cost functions, expressed as P(x) = R(x) - C(x).
Definition
profit function is the difference between revenue and cost functions, expressed as P(x) = R(x) - C(x). Marginal profit is derived from the derivative of the profit function.
Mechanism
profit function requires finding the marginal profit function to estimate profit from the sale of the thirtieth skateboard. The profit function is also used to calculate the profit for the number of pizzas.
Effects
profit function affects the interpretation of results.