Editing Profit maximization (section)

==Basic definitions==
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Any costs incurred by a [[corporation|firm]] may be classified into two groups: [[fixed cost]]s and [[variable cost]]s. Fixed costs, which occur only in the short run, are incurred by the business at any level of output, including zero output. These may include equipment maintenance, rent, wages of employees whose numbers cannot be increased or decreased in the short run, and general upkeep. Variable costs change with the level of output, increasing as more product is generated. Materials consumed during production often have the largest impact on this category, which also includes the wages of employees who can be hired and laid off in the short run span of time under consideration. Fixed cost and variable cost, combined, equal [[total cost]].

[[Revenue]] is the amount of money that a company receives from its normal business activities, usually from the sale of goods and services (as opposed to monies from security sales such as equity shares or debt issuances).

The five ways formula is to increase leads, conversation rates, average dollar sales, the average number of sales, and average product profit. Profits can be increased by up to 1,000 percent, this is important for sole traders and small businesses let alone big businesses but none the less all profit maximization is a matter of each business stage and greater returns for profit sharing thus higher wages and motivation.<ref>entrepreneur.com</ref>{{Full citation needed|date=November 2022}}

[[Marginal cost]] and [[marginal revenue]], depending on whether the [[calculus]] approach is taken or not, are defined as either the change in cost or revenue as each additional unit is produced or the [[derivative]] of cost or revenue with respect to the quantity of output. For instance, taking the first definition, if it costs a firm $400 to produce 5 units and $480 to produce 6, the marginal cost of the sixth unit is 80 dollars. Conversely, the marginal income from the production of 6 units is the income from the production of 6 units minus the income from the production of 5 units (the latter item minus the preceding item).