Profit Maximisation
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Title: Profit Maximisation

Essay Details:

Subject: Business
Author: James F
Date: August 27, 2013
Level: University
Grade: B
Length: 7 / 2063

Essay text:

Changes in these objectives can have forcible effects on the decisions that firms take day-to-day regarding pricing, output levels, the market and capital investment. Depending on the size of the corporation, objectives will evolve to meet changing economic conditions. The standard neo-classical assumption is that a business strives to maximize profits. Profit maximization is the process by which a firm determines the price and output level that returns the greatest profit, where marginal cost is equal to the marginal revenue. The theory of a firm tends to make this assumption because despite the growing importance for market survival and frequent calls for corporate social responsibility, creating a profit appears to be the most significant single objective of organisations in our market economy...

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