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| n |
The
sellers in this market are dentists.
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dentists
want to maximize their profits.
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| n |
What
are profits and how can they be
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maximized?
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Dentists
earn money (revenue) by selling their
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services
e.g. by placing crowns, etc.
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Out
of this revenue they need to pay for the
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factors
they use to produce the treatment (costs)
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e.g.
pay their receptionist, pay the rent or pay for a
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new
x-ray processor. Profit
is the excess of revenue
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over costs.
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