Profit is maximized when the difference between total revenue and total cost is the greatest. Businesses typically use several strategies to achieve this goal:
1. Pricing Strategies: Setting the right price for products or services to balance demand and profitability. 2. Cost Management: Reducing operational costs without compromising quality. 3. Market Segmentation: Targeting different segments with tailored products or services. 4. Product Differentiation: Offering unique products to reduce direct competition. 5. Economies of Scale: Increasing production to reduce per-unit costs.