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Alternative Organization


How to Maximize Profit

Profit

Economist Lester Thurow writes about profit for The Concise Encyclopedia of Economics:
http://www.econlib.org/LIBRARY/Enc/Profits.html

Survival

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

Circular Flow

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

Dealing with Three Fundamental Tasks
The Demand Curve for Output

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 Production Function

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

Searching for Total Cost
Profit-Maximizing Output

Wikipedia has a short explanation of the profit-maximizing condition, along with some poorly done graphs:
http://en.wikipedia.org/wiki/Profit_maximization


 

Web

ingrimayne.com


These links were checked on May 27, 2007



Copyright Robert Schenk