Production function: This term refers to the relationship between inputs (factors of production) and outputs (final products). It shows how much output can be produced from given quantities of inputs.
Total revenue: Total revenue represents the total amount of money received by a firm from selling its final products. It is calculated by multiplying the price per unit by the quantity sold.
Profit maximization: Profit maximization is when a firm aims to produce at a level where its total revenue exceeds its total costs. By finding this optimum point, businesses can maximize their profits.