When a small business is first getting started, its goal may appear relatively straight forward: to make as much money as possible for its owners. But for a business to be successful long term, a new ...

Writing in the WSJ last week, economics professor Paul Rubin “takes the community organizer-in-chief to task for his dismissive comments about profit maximization” (ht/E. Frank Stephenson): In ...

Fixed costs remain unchanged when you increase or decrease your sales or production volume. Variable costs change with changes in the volume of production activities. Profit maximization involves ...

Journal of Productivity Analysis, Vol. 27, No. 3 (JUNE 2007), pp. 231-236 (6 pages) Determining the profit maximizing input-output bundle of a firm requires data on prices. This paper shows how ...

Dear Karen: I’m having trouble maximizing profit. How can it improve? Answer: Keep better track of your revenue and expenses, and measure actual performance against goals. One way to do this is to ...

Many economists teach that joint profit maximization leads to a determinate quantity and indeterminate price of the intermediate good traded. Using isoprofit curves, the Truetts argue that only one ...

I asked Prof. Bainbridge whether I could cross-post this from Corporate Finance Lab, and he kindly agreed: What is the purpose of a corporation? Is it, as Nobel Economics laureate Milton Friedman ...