Profit maximization is the primary objective of most businesses, as firms seek to produce at a level where they generate the most profit while minimizing costs. Economists define the profit-maximizing output level as the point where marginal cost (MC) equals marginal revenue (MR). However, many businesses use different strategies to increase profits, such as cost-cutting, price adjustments, and efficiency improvements. This project challenges students to create a short video that clearly explains the concept of profit maximization in an engaging and visually appealing way.

Students will begin by researching how businesses determine their optimal level of production using economic theory. They should explain the relationship between total cost, total revenue, marginal cost, and marginal revenue in deciding the profit-maximizing output level. A crucial aspect of the video should be illustrating real-world examples of how firms apply profit maximization strategies—whether through adjusting production, setting prices strategically, or managing expenses.

The video should also explore different market structures, such as perfect competition, monopolistic competition, and monopoly, and how profit-maximizing decisions vary depending on competition levels. For example, a firm in a perfectly competitive market may need to accept market price, while a monopoly has more control over pricing.

Students are encouraged to use animations, diagrams, voiceovers, or creative storytelling to break down the concept into a simple yet informative format. The goal of this project is for students to demonstrate their ability to explain economic theory concisely while making it accessible to a general audience.