Alternative Organization
How to Maximize Profit
Economist Lester Thurow writes about profit for The
Concise Encyclopedia of Economics:
http://www.econlib.org/LIBRARY/Enc/Profits.html
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
India:
http://www.blonnet.com/iw/2003/12/14/stories/2003121400061100.htm
An article on enotes.com explains circular flow, though
it does not have a picture, which might be helpful:
http://business.enotes.com/business-finance-encyclopedia/circular-flow
Amosweb explains how the demand curve is the source of
the marginal-revenue curve:
http://www.amosweb.com/cgi-bin/awb_nav.pl?s=wpd&c=dsp&k=marginal+revenue
The article in wikipedia will tell you all you want to
know about production functions and probably a lot more:
http://en.wikipedia.org/wiki/Production_function
Wikipedia has a short explanation of the
profit-maximizing condition, along with some poorly done
graphs:
http://en.wikipedia.org/wiki/Profit_maximization
These links were checked on May 27, 2007
Copyright
Robert Schenk
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