Nearpod version available

Grade 9-12
,
Lesson

Profit Maximization

Time: 60 mins,
Updated: March 26 2021,
Author: Grant Black

Objective

Students will be able to:

  • Define diminishing marginal returns, marginal cost, marginal revenue, profits (losses), profit maximization, total cost, and total revenue.
  • Graph a quadratic total revenue function based on a firm’s demand function.
  • Build a profit function based on a total revenue function and a total cost function.
  • Determine the maximum of the profit function.
  • Solve an optimization problem to determine the quantity of output that maximizes profit using first and second derivatives of the profit function.

In this personal finance lesson, students will explore profits and profit maximization through profit functions.

Procedure

Click NEARPOD VERSION: PROFIT MAXIMIZATION to access an interactive version of the lesson powered by Nearpod: students interact and respond to questions on their device, and teachers will see their responses in real time!