Written by the Fiveable Content Team • Last updated September 2025
Verified for the 2026 exam
Verified for the 2026 exam•Written by the Fiveable Content Team • Last updated September 2025
Definition
The profit function is a mathematical equation that relates inputs (such as number of likes) to outputs (the amount of profit made). It provides a way to determine how much profit will be earned for different levels of input.
Related terms
Economics: The study of how individuals, businesses, and societies allocate scarce resources to satisfy their needs and wants. Profit functions are used in economics to analyze business profitability.
Revenue: The total income generated by selling goods or services. In this case, revenue would be related to the number of likes an influencer receives.
Costs: Expenses incurred in producing goods or providing services. Calculating profit involves subtracting costs from revenue obtained through the profit function.