Get the answer of: What are the Two Rules of Profit Maximisation? A profit-maximising firm has to face two different but inter-related questions: (a) Should it produce at all? (This is a question relating to shutting down or closing down any operation of the business.) (b) If it is profitable to produce any positive quantity, what is the optimum output? [...]
In this article we will discuss when does the profit of a firm become maximum. Also learn about why is the equality of marginal revenue and marginal cost essential for profit maximisation in all types of markets. The basic objective of a firm under all types of market situation is the profit maximisation. Accordingly, a firm, whether competitive or monopolistic, [...]
The following article will guide you about how does profit differ from other factor incomes. (a) Often confusion arises due to the fact that profit is treated as the return to both capital and entrepreneurship. The two terms interest and profit are often used as though they are interchangeable. Both are payments made to the suppliers of capital. But, it [...]