Ad
related to: profit function example- QuickBooks® Money
Get Paid, Manage Money, Cash Flow
Insights. No Subscription. No Fees.
- QuickBooks® Advanced
Simplify Your Business w/ Custom
Tools. Get A Free Product Tour!
- Free QuickBooks® Setup
Start Off Right With Help
Setting Up By A QuickBooks Expert.
- QuickBooks® Mid-Market
Customizable Solutions To Help Mid-
Sized Businesses Grow. Learn More.
- Invoices Made To Be Paid
Get Your Money 2x Faster
Than With Paper Invoices.
- QuickBooks® Enterprise
Sell More. Hire More. Grow More.
Manage More With Enterprise.
- QuickBooks® Money
Search results
Results From The WOW.Com Content Network
An example diagram of Profit Maximization: In the supply and demand graph, the output of is the intersection point of (Marginal Revenue) and (Marginal Cost), where =.The firm which produces at this output level is said to maximize profits.
Consider the following example. [1] Let output have price and inputs and have prices and .Suppose the production function is = / /.The unmaximized profit function is (,,,,) =.
For example, it is difficult for firms to know the price elasticity of demand for their good – which determines the MR. [20] In interdependent markets, It means firm's profit also depends on how other firms react, game theory must be used to derive a profit maximizing solution.
Important to note, in this case, the market demand is continuous; however, the firm's demand is discontinuous, as seen in the above function statement. This means the firm's profit function is also discontinuous. [5] Therefore, firm aims to maximise its profit, as stated below, taking as given: [10]
In the above profit functions we have price as a function of total output which we denote as and for two firms we must have = +. For example's sake, let us assume that price (inverse demand function) is linear and of the form p = a − b Q {\displaystyle p=a-bQ} .
The profit model is the linear, deterministic algebraic model used implicitly by most cost accountants. Starting with, profit equals sales minus costs, it provides a structure for modeling cost elements such as materials, losses, multi-products, learning, depreciation etc.
The standard newsvendor profit function is [] = [(,)] where is a random variable with probability distribution representing demand, each unit is sold for price and purchased for price , is the number of units stocked, and is the expectation operator.
Profit, in accounting, is an income distributed to the owner in a profitable market production process . Profit is a measure of profitability which is the owner's major interest in the income-formation process of market production.
Ad
related to: profit function example