Skip to content
1st Class Economics1st Class Economics
1st Class Economics
We Build the Future
  • Home
  • University Essays
    • Macro
    • Micro
    • Development
    • Econometrics
  • Revision
    • A-Level & High-School Resources
    • Definitions & Key Concepts
    • Free Model Essays
    • Economic Schools of Thought
    • Famous Economists
    • Case Studies: Financial Crises
  • Micro-Mania
    • Blog
    • Economics Jokes
    • Epic Government Failures
    • X-Files: Economics Edition
    • Fun Economics Videos
    • Economics Conspiracy Theories
    • Movie and Video Game Fan Theories
  • About
    • About Us
    • Why Us
    • Paperback vs. eBook
    • Contact Us
FacebookTwitterGoogle+
 
  • Home
  • University Essays
    • Macro
    • Micro
    • Development
    • Econometrics
  • Revision
    • A-Level & High-School Resources
    • Definitions & Key Concepts
    • Free Model Essays
    • Economic Schools of Thought
    • Famous Economists
    • Case Studies: Financial Crises
  • Micro-Mania
    • Blog
    • Economics Jokes
    • Epic Government Failures
    • X-Files: Economics Edition
    • Fun Economics Videos
    • Economics Conspiracy Theories
    • Movie and Video Game Fan Theories
  • About
    • About Us
    • Why Us
    • Paperback vs. eBook
    • Contact Us

Revenue Maximization

Revenue Maximization. A firm maximizes revenue at MR = 0. Revenue is maximized at MR = 0 because before that point MR > 0 so additional output adds to total revenue. After that point, MR < 0 so additional output decreases total revenue. Super-normal profit is still made, but it is less than under profit maximization.

A firm may want to maximize revenue to raise resources for a big investment. Furthermore, the firm may be trying to increase its market share and monopoly power or drive rivals out of the market. Managers may wish to maximize revenue if their pay is positively linked to revenue. Moreover, managers may revenue maximize for the prestige of maximizing the firm’s assets or stock vale.

Popular Blog Posts
  • Economics in the Movies
    May 15, 2017
  • X-Files: The Economics of Bigfoot
    February 15, 2017
  • How to Cheat in an Exam!!
    November 23, 2016
  • Fan Theory: Donkey Kong – Anti-American Propaganda
    August 14, 2017
1st Class Economics
© 2017 1st Class Economics. All rights reserved.
  • Home
  • University Essays
    • Macro
    • Micro
    • Development
    • Econometrics
  • Revision
    • A-Level & High-School Resources
    • Definitions & Key Concepts
    • Free Model Essays
    • Economic Schools of Thought
    • Famous Economists
    • Case Studies: Financial Crises
  • Micro-Mania
    • Blog
    • Economics Jokes
    • Epic Government Failures
    • X-Files: Economics Edition
    • Fun Economics Videos
    • Economics Conspiracy Theories
    • Movie and Video Game Fan Theories
  • About
    • About Us
    • Why Us
    • Paperback vs. eBook
    • Contact Us
Menu
This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish.Accept Reject Read More