{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Chapter19 - Chapter 19 Prot Maximization 1 Prots dened to...

Info icon This preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 19 - Profit Maximization 1. Profits defined to be revenues minus costs (a) value each output and input at its market price - even if it is not sold on a market. (b) it could be sold, so using it in production rather than somewhere else is an opportunity cost . (c) measure in terms of flows - in general, maximize present value of flow of profits. 2. Short-run and long-run maximization (a) fixed factors - plant and equipment (b) quasi-fixed factors - can be eliminated if operate at zero output (advertising, lights, heat, etc.); otherwise fixed amount if output is positive 3. Short-run profit maximization (see figure 19.1. in the textbook)
Image of page 1
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern