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Profit maximization occurs when a firm achieves the highest possible profit by balancing total revenue (TR) and total cost (TC). Under the TR-TC approach, a firm maximizes profit by producing the quantity where the difference between TR and TC is greatest. In the MR-MC approach, profit maximization occurs where marginal revenue (MR) equals marginal cost (MC); producing beyond this point would result in higher costs than revenues. Both approaches lead to the same optimal output level but use different methods to arrive at that conclusion.
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Among the multiplicity of objectives that a modern firm has profit maximization continues to be the most important Comment?
The success or failure of a firm is measured in terms of the amount of profit it is able to earn in a competitive market. Under profit management, one has to study various theories of profit, emergence of profit, functions of profit and its measurement, etc.Thoeries underlying the Objective of a Firm, mainly talk about the subject of Ethics in Business. Debate is going on since a long time, as to whether every Firm's Objective needs to be ETHICAL? the answer may seem as simple as "YES", but the counter arguements that follow are difficult to answer.Coming to Profit Maximization, the question goes as to whether Profit Maximization Goal is justitfied? In a private enterprise, no one can have control over Profit maximization. If the profits are made with the use of Society's resources, such profits need to be sowed back for Societal Development.The profit-maximization rule applies both to firms that are able to sell their product at a constant price and to firms that find they must reduce the price of their product to increase sales. In the real world, firms have to engage in trial-and-error discovery processes, searching for the profit-maximization point. But the process can be succinctly described by the marginal revenue-marginal cost rule.Profit is what is left over from a business after the bills are paid. without profit the company can not afford to re-invest in capital or have money to pay stockholders. I think Customer satisfaction if the basic motive and objective of firm. When we will more and more consider to satisfy customer needs and wants, automatically our secondary objective "profit maximization" will be achieved.
What name is given to a country which main aim you the maximization of profit?
I think what your asking it what economic system is in place in a country where firms maximise profit. The answer is Capitalism. Under Capitalism, such as we observe in the western world (UK, USA etc) each firm produces a product or service in order to make profit. The firm then allocates this profit amongst shareholders or individual owners as it sees fit. Under Communism, which was observed in Eastern Europe and the USSR, each firm produced a good or service which is allocated by the state.
What is consumer equilibrium under cardinal approach?
illustrate and explain e the consumer equilibrium ender cardinalist and ordinalist?
In what ways is wealth maximization objective superior to the profit maximization objective?
Wealth maximation aims in maximising Shareholders wealth, employees wealth, profiting the external and internal parties of the firm, vendors, vendees, customers, investors, employers and all the parties interested in the benefit of the company. Wealth maximation results in increased goodwill, branding and reputation of the company. Where as profit maximation only deals with increased profits. Wealth maximation is a wider concept
What is effect on profit Previous year forget closing stock for next year profit?
previous year profit under stated and present year profit understated
Under what conditions might profit maximization not lead to stock price maximization?
Under what conditions might profit maximization not lead to stock price maximization?"
Under what condition might profit maximization not lead to stock price maximization?
There are various conditions under which profit maximization may not lead to stock price maximization. Some of them include outstanding shares and assets falling below the cost of the debt among others.
Under what conditions might profit maximization not lead to share price maximization?
Profit maximization will not lead to share price maximization if the organization is working on building wealth in the future. With long range goals, the profits will be delayed until future goals are met.
Is profit maximization an appropriate for a business?
Profit maximization is the ONLY appropriate goal for a business. Even under a so-called "social responsibility" regime, a business only engages in such schemes because it thinks it can increase profits by doing so.
Among the multiplicity of objectives that a modern firm has profit maximization continues to be the most important Comment?
The success or failure of a firm is measured in terms of the amount of profit it is able to earn in a competitive market. Under profit management, one has to study various theories of profit, emergence of profit, functions of profit and its measurement, etc.Thoeries underlying the Objective of a Firm, mainly talk about the subject of Ethics in Business. Debate is going on since a long time, as to whether every Firm's Objective needs to be ETHICAL? the answer may seem as simple as "YES", but the counter arguements that follow are difficult to answer.Coming to Profit Maximization, the question goes as to whether Profit Maximization Goal is justitfied? In a private enterprise, no one can have control over Profit maximization. If the profits are made with the use of Society's resources, such profits need to be sowed back for Societal Development.The profit-maximization rule applies both to firms that are able to sell their product at a constant price and to firms that find they must reduce the price of their product to increase sales. In the real world, firms have to engage in trial-and-error discovery processes, searching for the profit-maximization point. But the process can be succinctly described by the marginal revenue-marginal cost rule.Profit is what is left over from a business after the bills are paid. without profit the company can not afford to re-invest in capital or have money to pay stockholders. I think Customer satisfaction if the basic motive and objective of firm. When we will more and more consider to satisfy customer needs and wants, automatically our secondary objective "profit maximization" will be achieved.
What name is given to a country which main aim you the maximization of profit?
I think what your asking it what economic system is in place in a country where firms maximise profit. The answer is Capitalism. Under Capitalism, such as we observe in the western world (UK, USA etc) each firm produces a product or service in order to make profit. The firm then allocates this profit amongst shareholders or individual owners as it sees fit. Under Communism, which was observed in Eastern Europe and the USSR, each firm produced a good or service which is allocated by the state.
What is consumer equilibrium under cardinal approach?
illustrate and explain e the consumer equilibrium ender cardinalist and ordinalist?
What are the critical differences in profit analysis when conducted in a capitated environment versus a fee-for-service environment?
Explain the critical differences in profit analysis when conducted under a capitated environment versus a fee-for service environment.
What is business and its features?
Business is any legal activity that under taken to earn profit is called business.feature is like a characteristic to explain the meaning and its concept in the meaning of business.
Profit maximation remains the most important objective of business firms inspite of multiplicity of alternative businessdiscuss?
Your question is not clear. If you mean by multiplicity of alternative business that the business firm has several companies operating under one "umbrella", it doesn't change the fact that every segment of the business has to turn an acceptable profit in order to survive. The only exception that comes to mind is to have one business that shows a paper loss as a way to offset other profit centers for tax purposes.
Definition of outreach maximization in micro finance institutions?
outreach maximisation strategy remains a dream that is under unsustainable in uganda discuss
In what ways is wealth maximization objective superior to the profit maximization objective?
Wealth maximation aims in maximising Shareholders wealth, employees wealth, profiting the external and internal parties of the firm, vendors, vendees, customers, investors, employers and all the parties interested in the benefit of the company. Wealth maximation results in increased goodwill, branding and reputation of the company. Where as profit maximation only deals with increased profits. Wealth maximation is a wider concept
