total revenue minus total cost equals total profit
Profit maximization To obtain the profit maximizing output quantity, we start by recognizing that profit is equal to total revenue (TR) minus total cost (TC). Given a table of costs and revenues at each quantity, we can either compute equations or plot the data directly on a graph. The profit-maximizing output is the one at which this difference reaches its maximum.
Aggregate expenditure Aggregate expenditures is defined as : AE = C+Ip+G+NX,