Under the marginal approach to profit maximization, to maximize profits, a firm should continue to produce a good or service up to the point where marginal profit is zero.
32.
A seminal article by Armen Alchian ( 1950 ) argued for adaptive success of firms faced with uncertainty and incomplete information replacing profit maximization as an appropriate modeling assumption.
33.
"It's a very cozy setup which does not allow for much concern about profit maximization at these companies, " said Vanous, who has been a critic of voucher privatization.
34.
As for the optimization criteria, the most usual objectives are the "'profit maximization "'or "'cost minimization "', but other alternatives are also conceivable, e . g ., throughput time minimization.
35.
If the predictions of the model fail, we conclude that the profit maximization hypothesis was false; this should lead to alternate theories of the firm, for example based on bounded rationality.
36.
However, as the amount of profit from ecotourism started to rise, the matters of protection of local environment and nature became secondary issues with all the attention focused on profit maximization.
37.
In order for an algorithm to optimally solve a profit maximization problem, the algorithm must produce an output that has as much profit as the optimal solution for every possible input.
38.
If the firm decides to operate it will produce where marginal revenue equals marginal costs because these conditions insure profit maximization ( or equivalently, when profit is negative, loss minimization ).
39.
China fits the model for the M-form as a result of their usage of multilevel models, goals of profit maximization, and the performance-driven nature of China s economic reforms ( Peng ).
40.
Abram Bergson has criticized the Lange model on the ground that monitoring firms to make sure their prices equal their marginal cost would be more expensive than enforcing profit maximization within firms.
