Given a downward-sloping demand curve and positive marginal costs, profit-maximizing firms will always sell?

Question:less output at higher prices than will revenue-maximizing firms. True...but why?

This is correct. A revenue maximizing firm will sell under all circumstances where profit is realized. However, a revenue maximizing firm will sell under circumstances where the profit is not maximized, as well (for example, when prices are low enough to continue selling, but not for profit.)

For example, a business strategy may be for a company to sell a printer at a loss (maximizing revenue) in order to make greater gains on sale of toner cartridges and specialty paper.

This article contents is post by this website user, doesn't promise its accuracy.

More Questions & Answers...
  • What kind of jobs can people get with Arts Degrees?
  • Is getting a masters in counseling worth the cost?
  • Which research university has the best Chemical Engineering Program?
  • How to become a heart surgeon?
  • I need the details about cutoff marks in tnpcee for the year 2006?
  • Should Colleges and Universities in the United States end their early admission programs?
  • What is an Appeal Statement?
  • Part Time MBA...?
  • Can an Indian Engineering graduate living in India get aTechnical job in America through
  • Is it worth getting your masters?
  • Copyright 2006-2012 All Rights Reserved.