Please help me write what are the interesting statement in this section and why

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Please help me write what are the interesting statement in this section and why is it important to know at economics 4-6 sentences Thanks!

10.3 WHY DOES THE MARGIN MATTER? Profit maximization is different from revenue maximization or cost minimization. Often a firm will forgo revenue opportunities because they are too costly to obtain. Contrary, a business will not be so foolish to control costs to the degree where it is unable to harvest enough revenue. In the short-run, a firm can adjust its production quantities to maximize its profits The logical course of action for a firm is to produce additional output when the revenue received is at least equal to the cost incurred at the margin. We have learned that a firm commits to a long-run plan and fixed inputs in which to base its operation. Subsequently selected is the most efficient combination of variable inputs that combine with the fixed inputs to produce output. Marginal costs are estimated for the production decisions of the short run. Due to diminishing returns to inputs, marginal cost rises with greater output. Therefore management should be wary that the profitability of increasing output during a specific period of time might eventually become doubtful. A movie theater provides an illustration on how managers of a firm carefully consider profitability by recognizing its marginal costs On any Saturday, the theater might play a movie four times an early show, an afternoon matinee, an early evening performance, and a night show. However, the theater is not constrained and could offer one more showing a late-night show for example. The firm would do this by employing more variable input. Ushers, ticket-takers and film projectionists might work extended hours, but tired workers may experience diminishing returns, and the marginal cost of the effort would rise.

Explanation / Answer

1. Profit maximization is different from revenue maximization or cost maximization as profit can be maximize in short run also, but the actual revenue which is earned should be put in the business again to atleast cover the cost per unit.

2. Output is a combination of both variable input and fixed input, so profitability can be earned by increasing either of them. But that does not mean that revenue has also increased.

3. Profitability can be measured by knowing the marginal cost. Marginal cost is measured by the dollars expended from producing an additional unit of output, and marginal revenue is the dollars received from selling that extra unit of output.

4. When marginal revenue is positive, total revenue increases.

5.Profit maximization confronts manager because marginal revenue normally falls with quantity, while marginal cost typically increases with quantity in the short run.

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