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Case Study: El Dorado Star

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Case Study: El Dorado Star
In order for El Dorado Star to make the maximum profit they should print and sell 4,000 papers daily. This is when they will make the most profit. So, to determine the point in which profit maximization happens, therefore, the manager of the El Dorado Star should increase production when marginal revenue exceeds marginal cost. Furthermore, the manager of El Dorado should lessen production when marginal revenue is less than marginal cost and thus this will determine when profit maximization occurs (Thomas & Maurice, 2010). So, if we change from 4,000 newspapers to 5,000 newspapers the profit will decrease.
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