Here is the synopsis of our sample research paper on PROFIT MAXIMIZATION: REALITY OR A THEORETICAL OBJECTIVE?. Have the paper e-mailed to you 24/7/365.
Essay / Research Paper Abstract
This 7-page paper argues that profit maxmization is more of a theoretical objective than a reality for a typical company. Bibliiography lists 4 sources.
Page Count:
7 pages (~225 words per page)
File: D0_MTprofmaxi.rtf
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Unformatted sample text from the term paper:
rational people behave when it comes to allocation of resources. Within the study of that social science are many theories in which economists attempt to explain the movement of prices
and production, goods and services. In determining this, economists come up with many theories, but some dont have a very good connection with the real world.
One of the more prevalent topics under discussion has been that of profit maximization. Economists use this theory to explain how firms set prices for particular
goods or services. The idea behind profit maximization is that a company in business to maximize profits will need to know how much labor and capital to use to obtain
the most profit from a venture. Once the input costs are realized, the company can then charge the right amount to take into account the costs, plus a reasonable profit.
Profit, in its most basic term, is defined as the difference between a companys total revenue and total opportunities costs - while
total revenue is the amount of income that is earned through selling products or services (Skaggs, 2008). Meanwhile, total opportunity costs involve input costs into the production processes as well
as the value of highest-valued alternatives to which resources can be dedicated (Skaggs, 2008). On when a firm understands the marginal costs of producing a good or service, as well
as demand elasticity, can price be set for profit maximization. Or at least, this is the theory. Most theorists believe that profit
maximization is a real objective of a company. The belief here, in fact, is that companies will focus solely on costs when it comes to setting prices - and this
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