About how companies simplify profit-total revenue

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We’ve talked about how companies simplify Profit = Total Revenue – Total Cost. We’ve also discussed how the more meaningful definition of profit is Profit = Total Value – Total Cost, where all costs are opportunity costs. How might an obsession with cost reduction be bad for a company? How might you as an individual use economics to improve your life, increasing your personal profits, including non-monetary profits? For example, how does falling in love impact the total value and total cost in your life as you evaluate it?

Reference no: EM131385488

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