A process that companies undergo to determine the best output and price levels in order to maximize its return. The company will usually adjust influential factors such as production costs, sale prices, and output levels as a way of reaching its profit goal. There are two main profit maximization methods used, and they are Marginal Cost-Marginal Revenue Method and Total Cost-Total Revenue Method. Profit maximization is a good thing for a company, but can be a bad thing for consumers if the company starts to use cheaper products or decides to raise prices.
Related information about profit maximization:
- Profit maximization - Wikipedia, the free encyclopedia
In economics, profit maximization is the short run or long run process by which a firm determines the price and output level that returns the greatest profit. There ...
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The monopolist's profit maximizing level of output is found by equating its marginal revenue with its marginal cost, which is the same profit maximizing condition.
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The Concept of Profit Maximization. Profit is defined as total revenue minus total cost. Π = TR – TC. (We use Π to stand for profit because we use P for something ...
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Definition of profit maximization: A process that companies undergo to determine the best output and price levels in order to maximize its return. The company ...
- Profit Maximization in Perfect Competition - Wolfram Demonstrations ...
A perfectly competitive firm with rising marginal costs maximizes profit by producing up until the point at which marginal cost is equal to marginal revenue.
- Profit Maximization - YouTube
Nov 7, 2011 ... This video shows how to maximize profit, and it derives the condition under which profit is maximized. For more information and a complete set ...
- Profit maximization - YouTube
In economics, profit maximization is the short run or long run process by which a firm determines the price and output level that returns the greatest profit.
- Advantages & Disadvantages of Profit Maximization | Chron.com
When a firm applies profit maximization, it is basically saying that its primary focus is on profits, and it will use its resources solely to get the biggest profits ...