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Marginal Revenue = Marginal Cost
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Is use of least-cost input combination a necessary condition for profit maximization is it a sufficient condition explain?
1. Minimization of Cost for a Given Level of Output: Least Cost Conditions
Factor of profit maximization?
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.
Why is that profit maximization may not necessary lead to wealth maximization?
Because as the price of a commodity increases, the purchasing power of consumers reduces. Consumers will then shy away and only few people would be able to pay for the extra. Thus, increase in profit may not necessarily mean maximization of wealth.
What are the policies on profit and maximization in manegerial economics?
WHAT IS THE PROFIT MAXIMISATION?
Which is more comprehensive objective profit maximization or shareholder wealth maximization?
If the company is public listed (trades in the stock market) their aim is shareholder wealth maximization whereas for a privately owned firm a profit maximization objective is appropriate.
Is use of least-cost input combination a necessary condition for profit maximization is it a sufficient condition explain?
1. Minimization of Cost for a Given Level of Output: Least Cost Conditions
Factor of profit maximization?
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.
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 stock price maximization?
Under what conditions might profit maximization not lead to stock price maximization?"
Are wealth maximization and profit maximization related?
Not necessarily
What are the examples of profit maximization and maximization of shareholders profit?
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Advantages of profit maximization?
Profit maximization increase the graph of outputs.
Is profit maximization is good or bad for society?
Profit maximization can be both good or bad. Done correctly, profit maximization helps the company provide great products and services for customers.
Why is that profit maximization may not necessary lead to wealth maximization?
Because as the price of a commodity increases, the purchasing power of consumers reduces. Consumers will then shy away and only few people would be able to pay for the extra. Thus, increase in profit may not necessarily mean maximization of wealth.
Sales maximization vs profit maximization?
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
What is the difference between profit maximization and value maximization?
discount rate
Shareholder wealth maximization is considered to be a more appropriate goal for the firm than profit maximization because?
Shareholder wealth maximization is considered to be a more appropriate goal for the firm than profit maximization
