Communiquez avec les autres et partagez vos connaissances professionnelles

Inscrivez-vous ou connectez-vous pour rejoindre votre communauté professionnelle.

Suivre

What is the meaning of Profit-Maximizing rule?

user-image
Question ajoutée par Ibrahim Hussein Mayaleh , Sales & Business Consultant and Trainer , Self-employed
Date de publication: 2014/11/01
Kathy Mustafa
par Kathy Mustafa , Personal Assistant to CEO- Managing Sales and Marketing Departments , Saudi Kinda Real Estate

A process that  companies undergo to determine the best output and price levels in order to maximize its return. The company will usually adjust influential factors such as production costs, sale prices, and output levels as a way of reaching its profit goal. There are two main profit maximization methods used, and they are Marginal Cost-Marginal Revenue Method and Total Cost-Total Revenue Method. 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.

 

Aamir Ansari
par Aamir Ansari , Senior Teacher , Universal Group of Institutions

to generate more revnue within the given budget

More Questions Like This