Profit Maximization

Profit maximization is a process that companies undergo to look for the best output and price levels in order to maximize its revenue. The company in most cases adjust influential factors such as production costs, purchase prices, and output levels as a means of reaching the profit goal. Basically two main profit maximization methods used, and they usually are Marginal Cost-Marginal Earnings Method and Overall Cost-Total Revenue Process. Profit maximization is good for business, but can bad thing for consumers when the company starts make cheaper products or decides to get prices.