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)
The University of North Carolina at Pembroke (UNCP )
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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.

Additional Information

The Open Management Journal
Language: English
Date: 2009
Profit Maximization, Per Unit Cost Increase, Sales Maximization, JEL Classification: D21, M21

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