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It is same when your revenue increases and at the same time it manages to maintain its profit %. Assuming a company has a turnover of 100 crores and has a running expenditure of 75 crores then profit is 25 crores which is 25%. If the company takes steps to increase its turnover and manages to increase the total turnover the next year to 200 crores and manages to keep its expenditure to 150 crores, this implies that the profit this time around was the same 25% and hence profit maximization happened the same as revenue maximization. But it is seldom the case. In many cases when a company strives to increase either, the other takes a hit.
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A company is maximizing profit when marginal revenue?
A company maximizes profits when marginal revenue equals marginal costs.
How do you calculate the profit maximizing output level given a total revenue and total cost function?
how to calculate profit maximizing water level under quadratic cost function
The level of profit maximizing output is reached when marginal cost is?
equal to marginal revenue
What does profit maximizing quantity of output mean?
Its the level of production where marginal cost is equal to marginal revenue.
How does a monopolistically competitive firm determine its profit-maximizing price?
price = marginal revenue. marginal revenue > average revenue. price > marginal cost. total revenue > marginal co
How do you find a monopolist's profit maximising...?
The monopolist's profit maximizing level of output is found by equating its marginal revenue with its marginal cost, which is the same profit maximizing condition that a perfectly competitive firm uses to determine its equilibrium level of output. Indeed, the condition that marginal revenue equal marginal cost is used to determine the profit maximizing level of output of every firm, regardless of the market structure in which the firm is operating.
A company is maximizing profit when marginal revenue?
A company maximizes profits when marginal revenue equals marginal costs.
How do you calculate the profit maximizing output level given a total revenue and total cost function?
how to calculate profit maximizing water level under quadratic cost function
The level of profit maximizing output is reached when marginal cost is?
equal to marginal revenue
What does profit maximizing quantity of output mean?
Its the level of production where marginal cost is equal to marginal revenue.
How does a monopolistically competitive firm determine its profit-maximizing price?
price = marginal revenue. marginal revenue > average revenue. price > marginal cost. total revenue > marginal co
The price charged by a profit-maximizing monopolist occurs at?
the point where the marginal cost curve intersects the marginal revenue curve
When a perfectly competitive firm is at its profit maximising level of output it is?
maximizing the difference between total revenue and total cost
Policies on profit maximization?
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.
How do you achieve the profit maximizing price?
Let the demand facing a firm for its product be expressed by the following functions Q=25-0.5P Where Q=quantity and P=price, and cost function as C=25-2Q+4Q2 Compute a) Profit maximizing output, b) Justify profit maximizing output
How do you find profit maximizing level of output?
The best way to find the profit maximizing level of to calculate it using the profit maximizing formula. To calculate it you need to know margins and how long it takes you to do each task.
Is net profit and net revenue the same?
Operating revenue is only revenue from basic business operating activities while net revenue is included both operating as well as revenue from non operating activities.
