Definition of Profit Maximization?


Profit maximization is the process by which a business determines the price that returns the greatest profit. Profit can be increased by maximizing the difference between revenue and cost. It can also be increased by balancing the marginal revenue with marginal cost.
Q&A Related to "Definition of Profit Maximization?"
Trying to make the greatest amount of profit possible.
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2 Additional Answers
Profit Maximization is the process by which companies undergo to determine the best output and price levels so as to maximize its returns. It can be either achieved by the Marginal Cost-Marginal Revenue Method or the Total Cost-Total Revenue Method. Profit maximization however may cause the company to be so entrenched in the singular strategy meant to maximize its profits to the extent, that it loses everything if the market takes a sudden turn.
Profit maximization refers to the process that companies undergo in order to determine the best output and price levels in order to maximize its return. Influential factors such as production costs, sales prices and output levels are usually adjusted by the company in order to reach profit goals. Even with the goal to maximize profits, a company must cater for customers' needs.
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