An Increase in Per Unit Cost: The Response from a Sales Maximizer and a Profit Maximizer
- UNCP Author/Contributor (non-UNCP co-authors, if there are any, appear on document)
- Dr. Lydia Gan, Associate Professor (Creator)
- Institution
- The University of North Carolina at Pembroke (UNCP )
- Web Site: http://www.uncp.edu/academics/library
Abstract: This paper investigates the decision making of firms with two different objectives – profit maximization and sales maximization, and compares their responses when encountering a higher per unit production cost or if per unit tax is imposed. The discussion in this paper is a follow up of Li and Yao [1], except in this case, a more comprehensive literature review is provided, and a very restricted result previously proposed has been substantially expanded to a few more general propositions.
An Increase in Per Unit Cost: The Response from a Sales Maximizer and a Profit Maximizer
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Created on 9/29/2011
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Additional Information
- Publication
- The Open Management Journal
- Language: English
- Date: 2009
- Keywords
- Profit Maximization, Per Unit Cost Increase, Sales Maximization, JEL Classification: D21, M21