"To Maximise Profit You Need To Sell Your Output At The Highest Price" Essays and Research Papers

To Maximise Profit You Need To Sell Your Output At The Highest Price

managers and whether they should join the joint venture or not. Profit maximisation Profit maximisation is the process by which a firm determines the price and output level that returns the greatest profit. There are several approaches to this problem. The total revenue - total cost method relies on the fact that profit equals revenue minus cost, and the marginal revenue - marginal cost method is based on the fact that total profit in a perfectly competitive market reaches its maximum point where...

Costs, Economics, Fixed cost 1323  Words | 5  Pages

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Marginal Cost and Total Profits

manufactures and sells a line of sewing machines. Monthly demand for one its most popular models is given by the following relationship: Q = 400 – 0.5P where P is price and Q is quantity demanded. Total costs of production (including a “normal” return on owners’ investment) per month are: C = 20,000 + 50Q + 3Q2 a. Express total profits (() in terms of Q. b. At what level of output are total profits maximized? What price will be charged? What are total profits at this...

Costs, Economics, Game theory 641  Words | 4  Pages

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Marginal Analysis and Profit Maximization

Marginal Analysis and Profit Maximization Task A At the point of profit maximization within any firm, the aspects of both marginal revenue and marginal cost play a major role. The economically working definition of marginal revenue is termed as: the extra revenue that an additional unit of product will bring. It is the additional income from selling one more unit of a good; sometimes equal to price (MoneyTerms, 2005). The marginal revenue of the output of any given product ties closely in the...

Cost, Costs, Economics 971  Words | 3  Pages

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What Is the Best Thing to Do with Your 10,000 Pesos Capital?

What Is The Best Thing To Do With Your 10,000 Pesos Capital? There’s a lot of business that you can do that requires little or no capital at all. Discipline and perseverance is what one needs to have in order to do this. For a 10,000 pesos capital . . . . . . . For me, these are the businesses that can be made : Sell electronic load There’s a lot of companies emerging that offers an all in one sim card. With a single capital, you can already sell different kinds of electronic load...

Business, Food, Marketing 599  Words | 3  Pages

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Short RUn Prouder Theory and Profit Maximization

Lecture Notes on Short-Run Producer Theory and Profit Maximization Lalith Munasinghe Production Functions We begin with a few definitions. Firm: An organization that turns inputs into outputs. Production Function (PF): The mathematical relationship between inputs and outputs. The PF is a technical relationship that specifies how much output can be produced from any possible combination of inputs. Example: an automobile is an output made from a complex combination of a variety of inputs...

Economics, Employment, Input 1323  Words | 7  Pages

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Oligopoly: Cartel and Output

Briefly outline some of the main models of oligopoly in which firms compete according to output. Hence, discuss the contention that non-collusion is the inevitable outcome of oligopoly. (2000 words) ‘Oligopoly is an industry structure characterized by a few firms producing all, or most, of the output of some good that may or may not be differentiated.book’ An oligopoly lies somewhere in between a monopoly (only one seller) and competition (many sellers). Firms are said to exhibit ‘strong mutual...

Antoine Augustin Cournot, Cartel, Collusion 2144  Words | 6  Pages

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You Made It - Now Sell It

YOU MADE IT – NOW SELL IT! Have you ever wondered why great products don’t … been amazed at some … BILLY BASS Truth is… success may not depend as much on your product, as it does your sales strategy My name is … Welcome to … We’re here to talk about how you can create a successful sales … Why Me? ME Been in your shoes, fortunate to have been successful getting products into markets People hire me to create strategies to get their products into new and existing markets Happy to share...

Business, Consultative selling, Customer service 964  Words | 4  Pages

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Maximizing Profits

is both unable to influence the price of its product and the firm takes as given the price of its product set by supply and demand in the market. When a firm is in the competitive market the only way it is going to survive is to have market power. If a firm has market power then it can set its own price, which is called a price setter. The characteristics of a competitive market for a firm are when there a large number of small firms to compete with. Each firm sells the same product and the consumer...

Competition, Costs, Economics 1012  Words | 3  Pages

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Third Degree Price Discrimination Econ Essay

degree price discrimination, using the appropriate diagrams. Price discrimination is the action of selling the same good or service at different prices to different buyers in order to charge the highest possible price and maximise profits (Parkin, Powell and Matthews, 2014). A firm is employing the use of third price discrimination when a market is divided into two or more groups and charged differently according to their price elasticity of demand. Groups of people may have different price elasticity...

Cost, Costs, Economics 1372  Words | 7  Pages

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As Paolo Decesare, What Factors Do You Need to Consider Before Deciding What to Recommend in Your Sk-Ii Presentation to the Global Leadership Team (Glt)? What Kind of Analysis Will You Need to Do in Preparing for?

country's attractiveness for foreign business suc as P&G's GDP, per capita income, import restriction. Socio-cultural: This includes the culture of Japan in terms of their laws, values, different tribes, language, demographic statistics, as P&G need to take notice in order to position their new product in a global market. Technological: This postulate the processes of manufacturing the product such as the materials and machines, the rate of technological changes, new patent and products. Environmental...

Marketing, Marketing mix, Porter five forces analysis 1315  Words | 4  Pages

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Role Of Price Mechanism In Econmic Syst

The role of price mechanism in a free market economy or capitalism! The price system functions through prices of both goods and services. Prices determine the production of innumerable goods and services. They organise production and help in the distribution of goods and services, ration out the supplies of goods and services and provide for economic growth. Let us analyse the role of prices in all these spheres. (1) What and How Much to Produce: The first function of prices is to resolve the problem...

Capitalism, Economic system, Economic systems 2000  Words | 8  Pages

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An Approach to Manage the Supply Chain to Maximize Profit and Minimize Cost

gain, and one has "broken even". A profit or a loss has not been made, although opportunity costs have been "paid", and capital has received the risk-adjusted, expected return. For example, if a business sells fewer than 200 tables each month, it will make a loss, if it sells more, it will be a profit. With this information, the business managers will then need to see if they expect to be able to make and sell 200 tables per month. If they think they cannot sell that many, to ensure viability they...

Contribution margin, Cost, Costs 1109  Words | 4  Pages

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THE EFFECTS OF RISING OIL PRICES PER BARREL ON THE OPERATIONS AND FUNCTIONING OF THE MINING INDUSTRY IN Research Proposal Candidate: Faculty: Economics and Administrative Sciences Instructor: Cyprus International University, Haspolat, Lefcosa, Turkish Republic of Northern Cyprus. Aim: The aim of this study is to investigate whether or not an increase in the price charged for oil per barrel will have an impact on the overall functioning of the mining industry and the operations carried out...

Light crude oil, Mining, OPEC 2389  Words | 7  Pages

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Price Discrimination | Amusement Parks

 JWI 515: Assignment Four: Price Discrimination Amusement Parks Professor Serluco Managerial Economics Charles W. Slaven November 30th, 2014 Introduction Consider these Amusement park pricing scenarios: Six Flags Discovery kingdom sells its annual season pass for $59.99. According to its website, “Buy your Season Pass for $59.99, just $14 more than a one-day admission.”  Bush Gardens Dark Continent. sells its Fun Card for $95.00. According to its website, “Pay for a Day, Get now through 2015...

Amusement park, Magic Kingdom, Marketing 1256  Words | 9  Pages

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Price Controls in Venezuela

Content Page(s) 1.a Effects of government policy that sets price controls on the sale of some goods 1.b Effects of government policy that subsidises the costs of goods to consumers 2 Evidence of maximum price controls in Venezuela 3 Costs and benefits of government regulation of prices in the short and long run 1. Using a basic demand and supply model, explain the effects of a government policy that: a) Sets maximum price controls on the sale of some goods Market is defined as...

Economic surplus, Economics, Economics terminology 1996  Words | 8  Pages

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Greeting Transfer Price

that they knew a price increase for framed items would soon be on the way. In an effort to dissuade him from increasing the transfer price for framed prints, several store managers e-mailed him with detailed analyses showing how framed-print sales had given stores a strong competitive position and had increased revenues and profits. The store managers mentioned, howeve4, that while they were opposed to an increase in the cost of frarned prints, they were looking forward to a price decrease for unframed...

Cost, Costs, Marketing 1337  Words | 6  Pages

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Maximizing Profits in Market Structure Papers

Maximizing Profits in Market Structure Papers XECO/212 By February 24, 2013 Market Structure – Page 2 According to Business Dictionary the economy is “an entire network of producers, distributors, and consumers of goods and services in local, regional, or national community.” With that being said, what roles does competitive market, monopolies, and oligopolies play in the economy? What...

Competition, Economics, Marginal cost 1161  Words | 4  Pages

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Cost and Profit

WHAT ARE COSTS AND PROFITS? HUNGRY HELEN’S COOKIE FACTORY • Helen, the owner of the cookie factory, buys flour, sugar, flavorings, and other cookie ingredients. • She also buys the mixers and the ovens and hires workers to run the equipment. • She then sells the resulting cookies to consumers. 2 TOTAL REVENUE, TOTAL COST, AND PROFIT • The amount that Helen receives for the sale of its output (cookies) is its total revenue. • The amount that the firm pays to buy inputs (flour, sugar, workers...

Costs, Economic cost, Economics 1304  Words | 5  Pages

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Alternative Theories to Profit Maximization

Alternative theories to profit maximization ranging from perfect competition to strict monopolies. Companies and The Market Most companies are profit oriented. Companies survive and live on profit. Even governmental institutions, NGO's and NPO's are profit oriented, what they do with profit is different though. Saying this means that companies seek always to be at a position where profit is maximized. As we know by now this happens when MC=MR but this is an always changing point as supply...

Competition, De Beers, Economics 1824  Words | 6  Pages

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hOW you can create your company

COMPANY OUR SERVICES YOUR SOLUTION We are a company that distributes and sells components, parts and computer equipment, in addition to a full range of electronic and technological equipment. We also provide maintenance and repairing of computers and diagnostic advisory systems. MISSION Providing high technology, communication, entertainment and computing solutions, both businesses and end consumers, always looking for customer satisfaction through competitive prices, variety, availability...

Computer, Consultative selling, Customer 318  Words | 5  Pages

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Profit Maximization

PROFIT MAXIMIZATION: REALITY OR A THEORETICAL OBJECTIVE? Research Compiled for The Paper Store, Inc. by Amy Sorter 3/2009 For More Information on This Paper, Please Visit www.paperwriters.com/aftersale.htm Introduction Though many people equate economics with finance and accounting, it's actually a social science, a study of behavior and how rational people behave when it comes to allocation of resources. Within the study of that social science are many theories in which economists attempt...

Cost, Economics, Marketing 1854  Words | 5  Pages

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Econ 561 Profit Analysis Question 2 LO3

capital, and 1 unit of entrepreneurial ability, selling at prices of $40, $60, $60, and $20, respectively. If the firm can sell these 400 units at $2 per unit, will it continue to produce banana bread? If this firm’s situation is typical for the other makers of banana bread, will resources flow to or away from this bakery good? Total Profits = Total Cost – Total Revenue Total Cost = Presource * Qresource and Total Revenue = Price * Qsold Total Cost = ($40 * 5 units of labor) + ($60 * 7 units...

Economics, Microeconomics, Neoclassical economics 673  Words | 3  Pages

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Wheat Future Prices

A futures contract is a standardized contract that is traded on a futures market. Traders buy and sell futures contracts with either of two intentions. There are individuals that are considered a hedger, such as farmers, assemblers, agricultural input suppliers and so on. A hedger is someone who wants to avoid or at least minimize price risk at all costs (Cheney, 2012). There are also people that are considered a speculator. Recently I have become a speculator within the wheat futures market. Wheat...

Chicago Board of Trade, Commodity Futures Trading Commission, Futures contract 1553  Words | 4  Pages

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Demand, Supply and Market Price Determination

Demand, Supply and Market Price Determination Consumer behaviour Utility is the economist’s term for the satisfaction a customer derives from the goods that they buy. Marginal utility is the increase in total utility arising from an increase in consumption by one more. For example, suppose I like eating bananas, and I have already eaten one banana; then the satisfaction I get from consuming a second banana is called by economists the marginal utility. Marginal utility is the utility gain from...

Aggregate demand, Consumer theory, Demand curve 1479  Words | 4  Pages

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The Reason for High Gas Prices

with the gas prices on a sign sitting in front of it. The gas sign said that the price for regular was "an arm", the price for plus was "a leg" and the price for premium was a "first born". As I marveled over what Photoshop can do, I began to think about these high gas prices and what is causing them. Everyone talks about, complains about, and jokes about the high gas prices, but no one does anything about them. Many people told me what they thought was causing the high gas prices, but I was always...

Alternative fuel, Automobile, Fuel 2452  Words | 6  Pages

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Opening your own business

yellow pages. The H W R Tax Service will specialize in senior retirements and investments. The H W R Tax Service will determine the profit-maximizing quantity by taking the cost per form or service provided and multiple it by the quantity of customers served; this will give the revenue that the company will make. This monopolist’s company can determine profit maximizing level by using the marginal revenue with the marginal cost. The service cost will vary depending on the complexity of the...

Corporate tax, Costs, Economics 1525  Words | 7  Pages

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Price Discrimination

PRICE DISCRIMINATION What is Price Discrimination; Price discrimination is a pricing tactic that charges consumers different prices for the same product or service. In other worlds, price discrimination exists, when identical product or service transacted at different prices from the same supplier. Price discrimination allows a company to earn higher profits than standard pricing because it allows firms to capture every last pence of revenue available from each of its customers. While perfect...

Competition, Cost, Economics 1572  Words | 6  Pages

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Supply and Demand and Price

Assignment Eco 101 1. a) Briefly explain the factors that determine the price elasticities of demand and supply. b) The accompanying table presents the prices and associated demand quantities of ready-made garments of Bangladesh at different world incomes. Price of RMG Quantity demanded when Quantity demanded when world GDP is $ 65 trillion world GDP is $ 70 trillion $10 500,000 800...

Economics, Elasticity, Marginal cost 739  Words | 4  Pages

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Maximazing Profit

Assignment: Maximizing Profits in Market Structures Paper XECO/212 University of Phoenix The structure of a market is defined by the number of firms in the market, the existence or otherwise of barriers to entry of new firms, and the interdependence among firms in determining pricing and output to maximize profits. This paper covers the following: the advantages and limitation of supply and demand, the characteristics of each market structure, the barriers to entry and how...

Competition, Economics, Imperfect competition 1763  Words | 6  Pages

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Why Might a Business Firm Pursue Other Objectives Besides the Objective of Maximum Profits? What Objectives Other Than Profit Maximisation Might a Firm Pursue? Is This Possible in a Competitive World?

Why might a business firm pursue other objectives besides the objective of maximum profits? What objectives other than profit maximisation might a firm pursue? Is this possible in a competitive world? The traditional theory of business behaviour tends to make a general assumption that businesses possess the information, market power and motivation to set a price and output that maximises profits. Profits being defined as the difference between the total revenue received by a firm and the total...

Cost, Cost curve, Costs 1076  Words | 3  Pages

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Topic: Profit Maximization of a Firm.

Project Topic: Profit Maximization of a firm. Profit maximization has always been considered the primary goal of firms.The firm's owner is the manager of the firm, and thus, the firm's owner-manager is assumed to maximize the firm's short-term profits (current profits and profits in the near future).Today, even when the profit maximizing assumption is maintained, the notion of profits has been broadened to take into account uncertainty faced by the firm (in realizing profits) and the time value...

Competition, Economics, Imperfect competition 1326  Words | 5  Pages

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Maximizing Profits in Market Structures

Maximizing Profits in Market Structures Competitive markets, monopolies, and oligopolies play a big role in the economy. We will be discussing the characteristics, price determination, output determination, barriers to entry, and the role in economy of each market structure. In a competitive market there are many firms that supply the same product, such as local gas stations. Mankiw (2007) stated, “You may recall that a market is competitive if each buyer and seller is small compared to the size...

Competition, Economics, Marginal cost 1081  Words | 3  Pages

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Profit maximisation is not the sole objective of business.

Profit maximisation has been one of the main aims of the firms. The generally accepted view is the long run will wish to maximize profit. Marginal Cost and Marginal Revenue can be used to find the profit maximising level of output. Marginal cost is the addition to total cost of one extra unit of output. Marginal revenue is the increase in total revenue resulting from an extra unit of sales. Economic theory predicts that profits will be maximised at the output level where marginal cost equals maginal...

Cost, Costs, Economics 1085  Words | 3  Pages

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Financing Your Business

American Intercontinental University Financing Your Business ABSTRACT Finances can be described in many ways. Throughout life we all use finances in some type of way. Whether it’s loaning money to a friend or borrowing money from the bank. Without financing we would not be able to complete most of the things that we need to do in our day to day life. It plays a very important role. There are many different ways to financing your own business. Whether you use the stock market, an investment banker...

Bank, Bond, Corporate finance 988  Words | 3  Pages

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Profit Maximisation Theory

profit maximization Definition A process that companies undergo to determine the best output and price levels in order to maximize its return. The company will usually adjust influential factors such as production costs, sale prices, and output levels as a way of reaching its profit goal. There are two main profit maximization methods used, and they are Marginal Cost-Marginal Revenue Method and Total Cost-Total Revenue Method. Profit maximization is a good thing for a company, but can be a bad...

Economics, Inverse demand function, Marginal revenue 3399  Words | 14  Pages

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Setting Product or Service Prices

Setting a price for a service or product can be very difficult. Patients are now checking to see prices on certain non-emergent services before having them performed. Patients also check prices on medications before they have prescriptions filled. What are the different methods and seven steps for setting an initial price for a product or service? There is much dissatisfaction with the prices of health care services. Consumers face rising co-payments and deductibles, employers are feeling the pinch...

Competition, Marketing, Marketing mix 1384  Words | 4  Pages

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You Decide E-Marketing

You Decide E-Marketing Assignment By: Meagan Ward Fundamentals of E-Commerce January 26, 2013 EXECUTIVE SUMMARY The purpose of this report is to develop an online strategy and create advertising ideas for Mary and Joe Johnson, the owners of Book Bunker. E-Commerce is what businesses and consumers use to buy, sell or exchange products and services over the internet. “E-commerce is a major factor in the U.S. economy because it assists companies with many levels of current business transactions...

Advertising, Customer, Customer relationship management 1778  Words | 5  Pages

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Profit Margin

between the owners of the firm and the managers of the firm. In privately owned | | |firms, management and the owners are usually the same people. Management operates the firm to satisfy its own goals, | | |needs, financial requirements and the like. As a company moves from private to public ownership, management now | | |represents all owners. This places management in the agency position of making decisions in the best interest...

Corporation, Finance, Limited partnership 936  Words | 5  Pages

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000($970,000-$177,000). The total implicit cost is $190,000($175,000+.15X$100,000). The total economic costs is $983,000($793,000+$190,000). b. The accounting profit in 2010 is $177,000($970,000-$793,000) c. The economic profit in 2010 is $-13,000($970,000-$793,000-$190,000). d. The owner should not leave his job because the economic profit is negative, which means he will earn less if he does his own business. 2. a. The type of agency problem that is involved here is principal-agent problem. Marriott...

Hotel, Marketing, Money 707  Words | 3  Pages

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Increasing Profit Margins

Increasing Profit Margins Proposal for Artemis Sportswear Profit Margin is a ratio that is calculated by dividing net profits of a company by its sales. This ratio measures how much of every dollar generated by sales is retained in company's earnings. Generally speaking, a higher profit margin indicates that a company is more profitable and has better control of its operational expenses. Gross profit margin can also be used to set and monitor sales goals for your company. Because the costs of...

Employment, Generally Accepted Accounting Principles, Gross profit margin 1514  Words | 4  Pages

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Price discrimination in practice

 Price discrimination in practice First and third degree discrimination in the train tariffs, etc. Price discrimination basically involves charging a different price to different groups of people for the same good. It needs some conditions. First of all, the firm must operate in an imperfect competition, it must be a price maker with a negative sloping demand curve. Second, the firm must be able to separate markets and prevent black market. Third, there would exist different consumer groups...

Cost, Economics, Marginal concepts 1510  Words | 6  Pages

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ECO1A Profit Maximization

2015 1. What is Profit Maximization using TR-TC Approach? Profit Maximization using TR-TC Approach is a method in determining the Profit and the Loss of a certain Company. To obtain the profit maximizing output quantity, we start by recognizing that profit is equal to total revenue (TR) minus total cost (TC). Given a table of costs and revenues at each quantity, we can either compute equations or plot the data directly on a graph. (Lipsey, 2011) Figure 1.Illustration of Profit Maximization using...

Competition, Economics, Microeconomics 1062  Words | 7  Pages

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Transfer Price

Question 5 – Transfer Price Division A, which is part of the ACF Group, manufactures only one type of product, a Bit, which it sells to external customers and also to division C, another member of the group. ACF Group's policy is that divisions have the freedom to set transfer prices and choose their suppliers. The ACF Group uses residual income (RI) to assess divisional performance and each year it sets each division a target RI. The group's cost of capital is 12% a year. Division A Budgeted...

Cost, Costs, Economics 679  Words | 4  Pages

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Balance Sheet Profit Loss

Profit and loss accounts and balance sheet By law companies are expected to produce financial statements each year. These statements appear in Company Reports. There are two main financial statements: 1. The profit and loss account, and 2. The balance sheet. 1.The profit and loss (P&L) account. This account can be updated regularly and shows how much profit or loss a business is making. A profit can be made in several ways, for example: * from trading, in the case of a High Street shop...

Balance sheet, Economics, Finance 981  Words | 3  Pages

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Economics, Marginal Cost, Profit

modern day company that is like any other. The company sells quantities of products that are plastic backscratchers. The company right now is failing severely because there are much more products being made then being sold and we need a way to find out how to find the number of production level that will maximize a company’s profit. We are given that the Total money the company spends is 840 + 10.26x - 0.0541x2 + 0.0007x3 And the Profit we are making from this amount of quantities are 30.5 –...

Calculus, Calculus with polynomials, Continuous function 999  Words | 4  Pages

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Basic Methods of Price Determination Following Points Must Be Taken Into Consideration Before Fixing the Price of a Product. Costs Competition Demand Legal Considerations Elements of Marketing Mix Etc. However, Major

Basic methods of price determination Following points must be taken into consideration before fixing the price of a product. Costs Competition Demand Legal Considerations Elements of Marketing Mix etc. However, major determinants of price are - Costs, competition and demand. Based on this there are three major approaches to setting the price of a product. They are: 1. Cost oriented pricing 2. Competition oriented pricing 3. Demand oriented pricing Cost oriented pricing In...

Competition, Costs, Marketing 1981  Words | 7  Pages

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Investment Banking Versus Your Future Career.

banking versus your future career. What do you really know about investment banking? Perhaps, you associate it with those huge mergers, initial public offerings or big corporate transactions which appear on front pages of newspapers. However, to decide if an investment bank is your future destination, certainly you need to know much more. So, let’s try to get some insight into this field of banking. When you think “bank” you usually associate it with commercial banks where you deposit or from...

Bank, Buy side, Corporate finance 1016  Words | 3  Pages

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Explain the view that profit making, via the efficient production of private goods in a market economy, remains the proper and sole criterion of business success.

Explain the view that profit making, via the efficient production of private goods in a market economy, remains the proper and sole criterion of business success. It seems logical to think that businesses are set up to sell a product or service with the intention of making a profit. This has often led to the opinion that businesses are singularly driven with profit in mind. There appears to be little room for ethics in this scenario and a negative view of the world of business is often derived...

Business ethics, Corporate social responsibility, Corporation 2755  Words | 7  Pages

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media of advertisement. 4 . What kind of relationship would you postulate between short-run and long-run average cost curves when these are not U-shaped as suggested by the modern theories? 5 . How do demand forecasting methods for new products vary from those for established products? 6 . What are the different methods of measuring national income? Which methods have been followed in India? 7 . What do you understand by the investment multiplier? In what way does it defend...

Business cycle, Cost, Cost curve 324  Words | 3  Pages

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Explain how an organization can cost a product and determine its price at any activity level

For this task I will explain how a product price is determined and how this is calculated at the activity level of the product in the shop. - Costs can be divided into different concepts. Below I will explain those concepts and give an example of how it will work in practice. o Direct costs Direct costs are the costs that are directly linked to a cost object. You can also say, the costs that are made when making the product ready. All the costs of making the product ready for sale are the...

Cost, Costs, Employment 1084  Words | 4  Pages

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Fully Explain How Advertising Can Affect Profits in Competitive and Non-Competitive Markets

This essay is going to examine how advertising strategies used in different market structures affects profits of the firms. This essay is being written based on Advertising, an article by Geoff Stewart, in which he examines “how do firms determine their advertising strategy”. In this article he uses Monopolies as an example of a non-competitive market and Oligopolies as an example of competitive markets, so in this essay Monopolies and Oligopolies will also be used as examples. However other competitive...

Competition, Economics, Game theory 1145  Words | 3  Pages

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Evaluate the view that, because price discrimination enables firms to make more profit, firms, but not consumers, benefit from price discrimination

Evaluate the view that, because price discrimination enables firms to make more profit, firms, but not consumers, benefit from price discrimination Price discrimination is where a firm changes different consumers different prices for the same service. Consumer Surplus is the difference between what the consumer is willing to pay and the price they actually have to pay. In all three degrees of price discrimination firms are able to make more profit and eliminate any excess capacity they...

Elasticity, Marginal cost, Marketing 1216  Words | 4  Pages

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Price Price which means that the amount of payment for goods and services given in money term. Price also is the total values for consumers exchange for the benefit for their satisfaction by using or having the product or service. Price decisions must focus on product design, promotion costs, distribution and more mixed, forming a valid imploded marketing plan. In arrange the price of a product, marketers must use the pricing strategy. However, use the pricing strategy not only can fascinate more...

Customer service, Marketing, Price 873  Words | 3  Pages

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Supply and Demand, Markets, Prices and Price Setting

Supply and Demand, Markets, Prices and Price Setting Cirilo "Lee" E. Montano Trident University Microeconomics ECO201 Allison Kaminaga, Ph.D. December 10, 2012 Explain what happens to price and quantity of coffee when the following events occur: 1. An advertising campaign highlights scientific studies that find drinking coffee can help reduce weight gain.    a. What do you think would happen? People will buy more coffee, drink more coffee, and research what coffee will help them lose...

Coffee, Dunkin' Donuts, Elasticity 1600  Words | 5  Pages

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Gross Profit

referred to as the bottom line, net profit, or net earnings - is an entity's income minus expenses for an accounting period.[1] It is computed as the residual of all revenues and gains over all expenses and losses for the period,[2] and has also been defined as the net increase in stockholder's equity that results from a company's operations.[3] In the context of the presentation of financial statements, the IFRS Foundation defines net income as synonymous with profit and loss.[1] Net income is a distinct...

Balance sheet, Costs, Generally Accepted Accounting Principles 1877  Words | 7  Pages

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Profit planning

Congratulations, you are now in charge of a $100,000,000 corporation. Your company manufactures sensors. Sensors are devices that observe physical conditions. Your sensors are installed into the products your customers sell. Sensors are everywhere. Almost any product that has an automated function requires some sort of sensor. Your company was created when the government split a monopoly into identical competitors. When the company was a monopoly, operating inefficiencies and poor product...

Competition, Factor analysis, Financial statements 924  Words | 4  Pages

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Maximizing Profits in Market Structures

Maximizing Profits in Market Structures Paper XECO/212 December 16, 2012 Maximizing Profits in Market Structures Paper Today's economy has many different factors that keep in afloat and keeps spending at an all-time high. There are many determining factors that dictate what direction our economy will be heading in. Some of the most important factors in regards with dealing with create revenue for the western worlds are market structures. The most important of the market structures would easily...

Competition, Economics, Market 1141  Words | 3  Pages

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Profit Maximization and Baumol Model

2007 The key points underpinning the economics of a profit maximizing firm Neoclassical model of the firm states that organization will have the main objective of maximizing its profit within a given period of time. Maximum profit was achieved at the output at which marginal cost is equal marginal revenue. There are several factors which need to be considered when talking about the profit maximizing firm: 1. The assumption of the profit maximizing firm is that there is no segregation between...

Airline, Economics, Low-cost carrier 1793  Words | 5  Pages

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Price Discrimination

A seller charging competing buyers different prices for the same "commodity" or discriminating in the provision of "allowances" — compensation for advertising and other services — may be violating the Robinson-Patman Act. This kind of price discrimination may give favored customers an edge in the market that has nothing to do with their superior efficiency. Price discriminations are generally lawful, particularly if they reflect the different costs of dealing with different buyers or are the result...

Competition, Cost, Discrimination 1688  Words | 5  Pages

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Profit Maximising Midel

PROFIT MAXIMIZATION [See Chap 11] 1 Profit Maximization • A profit-maximizing firm chooses both its inputs and its outputs with the goal of achieving maximum economic profits 2 Model • Firm has inputs (z1,z2). Prices (r1,r2). – Price taker on input market. • Firm has output q=f(z1,z2). Price p. – Price taker in output market. • Firm’s problem: – Choose output q and inputs (z1,z2) to maximise profits. Where: π = pq - r1z1 – r2z2 3 1 One-Step Solution • Choose (z1...

Cost, Economics, Marginal cost 661  Words | 5  Pages

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