profit maximization an assumption that firms try to achieve the highest possible level of profits--total revenue minus total costs--given their production function. (6) ...
PROFIT MAXIMIZATION: The process of obtaining the highest possible level of profit through the production and sale of goods and services. The profit-maximization assumption is the guiding principle underlying short-run production by a firm.
Profit maximization
determining the optimum price and quantity
the totals approach
the marginal approach ...
See also: Profit maximization
Regardless of market structure firm maximized profit by producing where MR = MC. There are exceptions.
A collection of assumptions customarily made by mainstream economists starting in the late 19th century, including profit maximization by firms, utility maximization by consumers, and market equilibrium, ...
a widely recognized feature of ethical management and it was employed in order to give an explanation to the general idea, supported by numerous economists, according to which the main responsibility of businessmen was tied to profit maximization.
In a competitive market, for example, firms that are better run-that is, firms that more effectively pursue the shareholders' goal of profit maximization-tend to drive out firms that are less well managed.
Glen Petersen's book The Profit Maximization Paradox[8] sees the changes in the competitive landscape between the 1950s and the time of writing as so dramatic that the complexity of choice, ...
Profit maximization, or stockholder wealth maximization, are two real concerns for any organization - and they depend on solid financial decisions. To make good decisions, management needs good information.
Economics is based on two kings of optimizing behavior, utility maximization and profit maximization.
The Classic Economic Models collection emphasizes the role of diagrammatic economic models in describing optimizing behavior.
Cost minimization - An implication of profit maximization that the firm will choose the method that produces specific output at the lowest attainable cost.
Shadow prices indicate the rate at which optimal objective functions (i.e. profit maximization) change as constraints increase or decrease by one unit. A shadow price is an imputed marginal value assigned to individual resources by linear programs.
Definition: An objective of seeking to maximise total sales revenue, it is achieved where marginal revenue is zero. Often used as an alternative to profit maximization.
Related glossary term:
Marginal revenue ...
 See also: Tip, Perfect competition, Feedback, Equilibrium, Stats
  
|
RSS
