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Profit maximization (Micro)

A Matter of Costs (9/11/2007)

The rate at which variable cost changes in the short run is related to the nature of the fixed cost.

Keywords: AFC, ATC, AVC, average fixed cost, average total cost, average variable cost, capacity constraint, diminishing returns, efficiency maximization, increasing returns, marginal cost, MC, power generation, profit maximization

Border Patrol (2/27/2007)

To enhance profit, businesses often sell non-interoperable versions of the same products in different markets.

Keywords: DVD, movie, Palm Zaire, price discrimination, printer, product cycle, region code, region locks

Bundling (9/27/2011)

Selling goods in a bundle could increase sellers' profit under certain demand and cost conditions.

Keywords: mixed bundling, profit maximization, pure bundling

Demand Elasticity and Total Revenue -youtube (transcript) (1/29/2012)

A linear downward-sloping demand curve has a range of demand elasticities and an inverted U-shaped total revenue curve under single pricing.

Keywords: demand elasticity, elastic demand, inelastic demand, total revenue

Fund Raising at the Margin (9/22/2006)

The MR = MC profit maximization rule could be applied to fund raising.

Keywords: fixed cost, marginal cost, marginal revenue, MC, MR, profit

Marginal Revenue of Perfect Price Discriminators (11/17/2007)

The marginal revenue of perfect price discriminators is equal to price.

Keywords: economic surplus, efficiency, marginal revenue, marginal willingness to pay, MR, MWP, P, perfect price discrimination, price, profit maximization, reservation price, total willingness to pay, TWP

Marginal Revenue under Single-pricing - Price Searchers vs Price Takers (11/17/2007)

Single pricing leads to P = MR under price taking or P > MR under price searching.

Keywords: economic surplus, efficiency, price searching, price taking, profit, reservation price, single pricing, single-pricing

Maximization and Optimization at the Margin (7/7/2006)

Optimizing at the margin can bring about static economic efficiency.

Keywords: average benefit, entry, margin, marginal benefit, marginal cost, marginal revenue, Maximization, MB, MC, MR, optimization, pollution, profit, single pricing, tragedy of the commons

Price Searchers, Price Discriminators, and Price Takers (9/19/2006)

The uniqueness of products affects the pricing power of sellers.

Keywords: output, price discriminator, price searcher, price taker, profit, reservation price

Profit Maximization - Total vs Marginal (11/17/2007)

Profit maximization can be characterized with reference to the total revenue and total cost curves or the marginal revenue and marginal cost curves

Keywords: fixed cost, marginal cost, marginal revenue, profit maximization, total cost, total revenue, variable cost

Profit Maximization Under Natural Monopoly (1/23/2012)

Natural monopoly with decreasing average total cost can still make profit by equating marginal revenue with marginal cost while achieving economic efficiency through price discrimination.

Keywords: ATC, average total cost, marginal cost, marginal revenue, MC, MR, natural monopoly, price discrimination, profit maximization, regulation, single pricing, total revenue, total willingness to pay, TWP

Profit Maximization Under Natural Monopoly (transcript) (1/29/2012)

Natural monopoly with decreasing average total cost can still make profit by equating marginal revenue with marginal cost while achieving economic efficiency through price discrimination.

Keywords: ATC, average total cost, marginal cost, marginal revenue, MC, MR, natural monopoly, price discrimination, profit maximization, regulation, single pricing, total revenue, total willingness to pay, TWP

Profit Maximization Under Single Pricing (transcript) (1/20/2012)

Single-price searchers maximize profit by setting a uniform price where marginal revenue is equal to marginal cost.

Keywords: diminishing returns, marginal cost, marginal revenue, MR = MC, price searcher, profit maximization, single pricing

Profit Maximization of Price Takers (11/2/2011)

As one of many small firms, price takers are powerless to set price. They set the max-profit output by equating price with marginal cost.

Keywords: perfect competition, price taker, profit maximization

Profit Maximization of Price Takers (transcript) (2/6/2012)

As one of many small firms, price takers are powerless to set price. They set the max-profit output by equating price with marginal cost.

Keywords: perfect competition, price taker, profit maximization

Profit Maximization under Single Pricing (transcript) (1/29/2012)

Single-price searchers maximize profit by setting a uniform price where marginal revenue is equal to marginal cost.

Keywords: diminishing returns, marginal cost, marginal revenue, MR=MC, price searcher, profit maximization, single pricing

Profit maximization under single pricing (11/2/2011)

Single-price searchers maximize profit by setting a uniform price where marginal revenue is equal to marginal cost.

Keywords: diminishing returns, marginal cost, marginal revenue, MR=MC, price searcher, profit maximization, single pricing

Profit vs Efficiency Maximization (11/2/2011)

Pricing modes determine the conflicts between profit maximization and efficiency maximization.

Keywords: consumer surplus, economic surplus, efficiency maximization, perfect price discrimination, price taking, profit maximization, single pricing

Profit vs Efficiency Maximization (transcript) (1/29/2012)

Pricing modes determine the conflicts between profit maximization and efficiency maximization.

Keywords: consumer surplus, economic surplus, efficiency maximization, perfect price discrimination, price taking, profit maximization, single pricing

Untangling Marginal vs Average Value (9/22/2006)

When average value is falling, marginal value is below it. And when average value is rising, marginal value is above it.

Keywords: average cost, average grade, marginal cost, marginal grade