When profit maximization is performed with limited resources, ration formulation is used. If an organization is without limited resources, no rationing is needed.
Yes, the traditional profit maximization model still applies because resources are still limited. To make sure you are getting the most money, you have to consider what generates the most profit based on limited resources and other constraints.
Resources is a factor in profit maximization. A company has to have all of their necessary resources in place to ensure they can maximize their profits each day.
sales maximization technique is generally used in scale industries where base of the expenses is largelly fixed and where variable costs are limited. on the other hand profit maximization technique are used by variety of industries. total output is higher in sales maximization as compared to profit maximization
Under what conditions might profit maximization not lead to stock price maximization?"
The key difference between profit maximization and sales maximization focuses on the handling of costs/expenses. Sales maximization is a topline income statement action that attempts to maximize sales revenues. Sales maximization techniques are used in scale industries where the expense base is largely fixed and there are limited variable costs associated with acquiring the next dollar of sales. Profit maximization is a multiline income statement action that attempts to both maximize sales (as represented above) while minimizing expenses in order to maximize effective margin. Profit maximization techniques are used across a variety of industries.
Not necessarily
i can help u out. mail me on meghaverma18@yahoo.com
Profit maximization increase the graph of outputs.
Profit maximization can be both good or bad. Done correctly, profit maximization helps the company provide great products and services for customers.
discount rate
Shareholder wealth maximization is considered to be a more appropriate goal for the firm than profit maximization
WHAT IS THE PROFIT MAXIMISATION?