The Right Formula In economics, the profit maximization rule is represented as MC = MR, where MC stands for marginal costs, and MR stands for marginal revenue.

While profit maximization is always the long-term goal for any for-profit business, sales maximization is a short-term strategy that businesses implement periodically.

Writing in the WSJ last week, economics professor Paul Rubin “takes the community organizer-in-chief to task for his dismissive comments about profit maximization” (ht/E. Frank Stephenson): In ...

This paper hinges on the distinction between "maximizing profit" and "making profit." It recounts from Adam Smith the ethical basis for profit making, and observes in Augustin Cournot why the ...

This argument ignores one of the most basic premises of economics. We economists assume that firms always maximize profits, and that profit maximization by firms (all firms, not just private ...