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Profit Maximisation
Essay specific features
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Written by:
Paul L
Date added:
February 14, 2014
Level:
University
Grade:
A
No of pages / words:
8 / 2063
Was viewed:
1648 times
Rating of current essay:
Essay content:
Changes in these objectives can have forcible effects on the decisions that firms take day-to-day regarding pricing, output levels, the market and capital investment. Depending on the size of the corporation, objectives will evolve to meet changing economic conditions. The standard neo-classical assumption is that a business strives to maximize profits...
displayed 300 characters
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The standard neo-classical assumption is that a business strives to maximize profits. Profit maximization is the process by which a firm determines the price and output level that returns the greatest profit, where marginal cost is equal to the marginal revenue. The theory of a firm tends to make this assumption because despite the growing importance for market survival and frequent calls for corporate social responsibility, creating a profit appears to be the most significant single objective of organisations in our market economy...
displayed 300 characters
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