"Optimal" can be defined in various ways. When looking from a profit maximization viewpoint, the level of production with the highest (return/cost) ratio will be the optimal. However, when looking purely from a productive viewpoint, the optimal level would be the one with the highest (output quantity/input quantity) ratio
Profit Maximization is a process that companies undergo to determine the best output and price levels in order to maximize its return. Companies usually adjust production costs, sale prices, and output levels as a way of reaching its profit goal. 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.
profit maximization is the (short run) process by which a firm determines the price and output level that returns the greatest profit
at the point where MR=MC, Profit is maximized.This is considered as the Optimum Production.
Profit maximization is a short run or long run process which a firm determines the price and output level that returns the greatest profit. The total revenue-total cost perspective is based on the fact that profit equals revenue minus cost and focuses on maximizing this difference.
for profit maximization,because cost of production of products is costly therefore price is high to cover the cost of production
Profit Maximization is a process that companies undergo to determine the best output and price levels in order to maximize its return. Companies usually adjust production costs, sale prices, and output levels as a way of reaching its profit goal. 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.
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
Value maximization and profit maximization are very much related, the main difference being- value maximization means increases in owners' wealth achieved by maximizing of the value of a firm's common stock. profit maximization is the process by which a firm determines the price and output level that returns the greatest profit. the other difference among the two could be sited as- value maximization is seen as long term objective of a firm, whereas profit maximization is generally a short term objective.
profit maximization is the (short run) process by which a firm determines the price and output level that returns the greatest profit
at the point where MR=MC, Profit is maximized.This is considered as the Optimum Production.
Profit maximization is a short run or long run process which a firm determines the price and output level that returns the greatest profit. The total revenue-total cost perspective is based on the fact that profit equals revenue minus cost and focuses on maximizing this difference.
Under what conditions might profit maximization not lead to stock price maximization?"
Not necessarily
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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.
for profit maximization,because cost of production of products is costly therefore price is high to cover the cost of production