How to Maximize Profits
Economist Lester Thurow writes about profit for The
Concise Encyclopedia of Economics:
One of the reasons that firms might not actually maximize
profit is something called the principal-agent problem,
which is explained in this piece from a publication from
An article on enotes.com explains circular flow, though
it does not have a picture, which might be helpful:
Amosweb explains how the demand curve is the source of
the marginal-revenue curve:
Thomas McGahagan of the University of Pittsburgh explains
the production function:
(I have not yet found an appropriate entry for this
Arnold Kling explains profit maximization in his class
Here is an entry from what may be the best economics blog
there is. It raises more questions than it answers.
Sweatshops are terrible, but should they be abolished?
Economists say that you need to consider the alternatives
before you answer that question. Opportunity costs should
not be ignored.
Textbooks traditionally show how firms maximize profits
using a variety of cost and revenue curves. About.com has a
good example of this approach in the form of a problem you
These links were checked on July 5, 2008.
this page here?