In sum, when the a company acquires anadditional unit of any input(s) to produce an additionalunit of any output, it increases social welfareby at least the amount of its profit—the differencebetween the value of the output and the cost of theinput(s) required in producing it.10 And thus thesignals to the management are clear: Continue toexpand purchases of inputs and sell the resultingoutputs as long as an additional dollar of inputsgenerates sales of at least a dollar.
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