The red line denotes marginal cost and this also increases as the production increases. The shaded region is the profits of the firm. The price line is also the marginal revenue and the average revenue for the firm. So, the company earns profit only when marginal cost is less than the marginal revenue (the area denoted by the shaded portion). When marginal cost increases more than the marginal revenue, the firm incurs loss and so production must be reduced. Also, at the point of profit maximizing quantity, the marginal revenue and marginal cost are equal.
This concept helps the firm to decide at what point the production must be increased or decreased. This also brings out the relationship between supply and demand. When the supply (the quantity produced) is less than the quantity demanded, the firm incurs profit and when the supply is more than demand, the firm incurs a…...

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References

McCann, Brian. T; Vroom, Govert. 2009. Ownership Structure, Profit Maximization, and Competitive Behavior. Academy of Management Proceedings. P1-6.

Nagurney, Anna. 2010. Supply Chain network design under profit maximization and oligopolistic competition. Transportation Research, Part E. 46(3). p281-294.

Mankiw, Gregory.N. 2009. Principles of Economics. Mason, OH: South-Western Cengage Learning.

Profit Maximization: An Actual or Theoretical Objective?
Profits are necessary to day both for the capitalist socialist and any type of economy to survive. Multinationals and giant companies have the profit motive and therefore maximizing profit as the base of their operations. This also goes under a new label namely stock holder gain. This is a form of profits that happens when the profit margins of the company go up and the market reflects these profits. Therefore profit maximization is or rather ought to be actual. To enter the argument therefore it is necessary to examine what profit is and how it is maximized.

Theories of Profit and Profit Maximization:

A firm survives if it can provide for the costs of production, the factors of production and then have a surplus for the entrepreneur. Profits are the foundation of the capitalist economy. Profit is based on the desire for personal gain, and this…...

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References

Beamer, Glenn. (2000) "Creative Politics: Taxes and Public Goods in a Federal System"

Brown, Vivienne. (2004) "The Adam Smith Review."

Routledge: New York.

Cutt, James; Murray, Vic. (2000) "Accountability and Effectiveness Evaluation in Non-Profit

Corporate Objective
I do not think it is necessary to have a single-valued objective function. Maximizing firm value is not mutually exclusive to all other objectives, first. Second, that's like saying that human should only seek to maximize his or her net worth -- it's absurd. A corporation is an investment vehicle, yes, but that's not all it is. As for the idea that firm value maximization is the best objective function, that's not entirely true either. It's important -- you wouldn't have a firm in the capitalist sense of the word without some value maximization, but if the firm didn't provide jobs, for example, it would also not exist. Every firm provides a living for at least one person -- and they do that before firm value even enters into the question.

Freeman's stakeholder theory reflects the idea that the firm should be governed by the interests of its stakeholders. Jensen…...

profit maximization of monopolistic firm and the benefits and disadvantages of a monopoly to a consumer.
MONOPOLY

The central theory in all of the profit-maximizing outcomes rests on the idea that marginal revenue should equal marginal cost. The same is true in the case of a firm with monopoly power. Before we discuss the profit-maximizing outcomes, it is important to understand what is meant by monopoly and how does it affect revenues and costs.

A firm has a monopoly if it is the only supplier in the industry of that particular product or products. Moreover there are no close substitutes. Therefore the consumers in this market have no choice but to buy from that one firm or not at all. For this reason, the monopolist is known as a price-maker because it has the opportunity to set prices at any desired level (Mankiw, 2000). Monopolies occur largely because of the existence of…...

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References

Mankiw, Gregory N. Principles of Microeconomics. South-Western College Pub; 2nd edition June 6, 2000.

Mas-Colell, Andreu et al. Microeconomic Theory. June 1995

Pindyck, Robert S., Rubinfeld, Daniel L. Microeconomics. July 27, 2000

Varian, Hal R. Intermediate Microeconomics: A Modern Approach. January 2003

They presented the idea that "business firms maximize profit as a means to maximize the utility of their owners. In a word: businessmen maximize profit as a means to maximizing utility, so profit maximization follows from utility maximization" (Ormazabal). One may observe that this approach is quite similar to that of the new institutionalists a few decades ago, mentioned above. This approach considers that profit maximization does not seem to a primary objective for nowadays companies. Instead, profit maximization derives from utility maximization, being implied by it. Therefore, profit maximization is an implicit objective, not a primary one.
The second approach is opposes the first one and was provided by Scitovsky in his paper "A Note on Profit Maximization and Its Implications." In Scitovsky's opinion, profit is maximized for its own sake, and this fact should be the starting point of any theory of profit. He considered that profit maximization…...

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Reference List

The Maximization Debates (2008). The History of Economic Thought. Retrieved March 3, 2008. Available at http://cepa.newschool.edu/het/essays/product/Maxim.htm.

Haring, J. & Smith, G. (1959). Utility Theory, Decision Theory, and Profit Maximization. The American Economic Review. Vol. 49, No. 4. Available at  http://links.jstor.org/sici?sici=0002-8282%28195909%2949%3A4%3C566%3AUTDTAP%3E2.0.CO%3B2-9 .

Ormazabal, Kepa M. (2008). Mas-Collel, Whinston, and Green vs. Scitovsky on Profit and Utility Maximization. University of the Basque Country. Department of Foundations of Economic Analysis. Retrieved March 3, 2008. Available at  http://www.ehu.es/fundamentosI/cas/investigacion/il2005-20.pdf .

He believed that people cannot be trusted to act in their own best interest, and are better governed by a state that usurps the profit motive thought process from the people. He understood the evils of the profit motivator in business, and sought to artificially remove it from the equation. However, he too understood that it is natural to seek profit as the motivation for business, as he acknowledged that the government must actually take steps to cleanse business of the profit motive.
At first glance, the profit motive seems inseparable from business. However, examining Mill and especially Marx, we understand that it is indeed possible to antiseptically remove profit as a motivator and purpose of business, but the question remains, what to replace it with?

Communism was not the answer. It removed profit as a motive, but was not able to substitute any other purpose to business, so business in…...

It isn't one size fits all anymore, either, thanks to modern computer-design methods that let architects vary the prefab houses the way Lego blocks can be moved around. More than that, though, architects think the new avant-garde looks can win over upscale buyers craving a touch of high design for their abodes" (Jeffrey & Keats 2004). Modular homes are both unique and inexpensive -- a perfect option for new home buyers wishing to keep costs down in an uncertain market yet to amp up the beauty of their structures. They are also good options for seniors, with downsized 'empty nest' dreams who want less home to support, but do not wish to go into a senior community.
Profit pools exist at every juncture of the home industry, from green and customized construction, to improvements and modifications, even to demolitions -- the debris from gutted structures can be recycled to create…...

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Works Cited

Gadiesh, Orit & James L. Gilbert. (1998, May 1). Profit pools: A Fresh look at strategy.

Harvard Business Review.

Jeffrey, Nancy Ann & Nancy Keates. (2004). Upwardly mobile homes: Is this architecture? Wall

Street Journal Online. Retrieved March 27, 2009 at  http://www.realestatejournal.com/homegarden/20040121-jeffrey.html

This means that during full agricultural seasons, prices will be lower, while during extra season, prices will increase. The price increase is explained by a lower and more difficult production of fruits and vegetables during winter times and also by the necessity to properly store the goods produced during the full season so that they remain fresh. In all, the retail price has to incorporate the production, transportation and storage costs and also the company's profit.

Price Increase

Currently, the average price promoted by Wokland is of 17 dollars per one kilogram of fruits and 10 dollars per one kilogram of vegetables. The net profit for 2005 was of 1.7 million dollars and the net profit for 2006 was of 1.5 million. In order to reach the desired 2 million dollars profit in 2007, the company has to increase their revenue sales by 33%. The easiest way to achieve increased income from…...

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Bibliography

Koplin, H.T., 1963, the Profit Maximization Assumption, Oxford Economic Papers, Volume 15, Number 2

Lipsey, R.G., Chrystal, K.A., 1989, Introduction to Positive Economics, 7 Rev Edition, Weidenfeld & Nicolson

Schneider, G., Knoedler, J., Sackrey, C., 2005, Introduction to Political Economy, 4th Edition, Dollars & Sense / Economic Affairs Bureau Inc.

Roth, R., 2001, Organic or not Organic? Serendip, First Report Web,   accessed on October 31, 2007http://serendip.brynmawr.edu/biology/b103/f01/web1/roth.html#1,last 

Market Efficient espect Set Information Impossible Makes Abnormal Profits
Market Efficient

In his work, Fama argued that given the massive use of resources by the brokerage firm to conduct studies on trends in the industry, the effects of changes in interest rates on corporate balance sheets and expectations of managers and/or political analysts of the companies should be able to systematically beat a generic portfolio with the same risk characteristics.

Since, according to Fama, professional in every situation, the analyst has a fifty percent chance of beating the market; although its specific capabilities did not exist he would beat a lot of the market. The analyst did "help" the market to be efficient if all the investors, in fact, would hold portfolios composed of stock indices, would open up significant opportunities for professional traders to take advantage of the situation. But the movement of traders to that "new market" would mean that the…...

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References

Arrow, K.J., 1959. 'Toward a theory of price adjustment', in M. Abramovitz (ed.), The Allocation of Economic Resources, and Stanford: Stanford University Press, pp. 41 -- 51.

Aumann, R.J., 1964. "Markets with a Continuum of Traders," Econometrica, Vol. 32, No. 1/2, Jan. - Apr., pp. 39 -- 50.

Clifton, J.A., 1977. "Competition and the evolution of the capitalist mode of production," Cambridge Journal of Economics, vol. 1, no. 2, pp. 137 -- 151.

Frank, R., 2008. Microeconomics and Behavior 7th ed. (McGraw-Hill) ISBN 978-007-126349-8.

Microeconomics
Over the last few years, it is evident that the airline industry in the U.S. has been experiencing long standing as well as novel challenges (The American Antitrust Institute, 2012). These includes the increase in the price of fuel, slowing demand for air travel and pressures to expand globally. Consolidation among various airlines across the country is the most common remedy that most of the airline firms are applying.

In April 2012, the U.S. Airways made an announcement to move and take over the American Airlines. American airline is the fourth largest airline in the United States while U.S. Airways is the fifth (Plane Buzz, 2013). This merger, therefore, will make the U.S. Airways- American the largest in the United States with a combined share of more than 21% (The American Antitrust Institute, 2012).

The merger is worth 11 billion U.S. dollars and will turn America into the largest airline in…...

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References

Carlton, D.W., Landes, W.M. & Posner, R.A 1980 'Benefits and Costs of airline mergers, The

Bell Journal of Economics, Vol. 11, No. 1, pp. 65-83

Retrieved from  http://www.jstor.org/discover/10.2307/3003401?uid=2134&uid=2&suid=70&uid=4&sid=21101927848577 

Raper, K.C, Love, A.H. & Shumway, R.C 2007, Distinguishing the Source of Market Power, American Journal of Agricultural Economics, Vol. 89, No. 1 (Feb., 2007), pp. 78-90 Retrieved from  http://www.jstor.org/discover/10.2307/4123564?uid=3738336&uid=2&uid=4&sid=21101942783417

Some of the paradoxes are quite complex and can lead to any kind of discussions, including game theory. I am referring, for example, to the network level strategy, with companies in a constant competition with one another, but needing to cooperate in order to maximize their profits. The prisoners' dilemma comes to mind in this sense, applied to the business environment: if you choose to increase your price, for example, your competitor will increase his as well and it is most likely none will win. On the other hand, if your competitor decreases the price in order to attract more customers, you need to be able to take the right decision keeping in mind that of your opponent.

Globalization vs. localization, national vs., global or control vs. chaos are all paradoxes which companies operating in today's business environment find themselves are facing. If we look at the paradoxes presented by De…...

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Bibliography

1. Randles, Sally. 2000. Cities in Evolutionary Perspective: Diversity, reflexivity, scale and the making of economic society in Manchester and Lyon. PhD thesis. Chapter 1. Page 23. On the Internet at http://les1.man.ac.uk/cric/Sally_Randles/phd/chapter1.pdf

2. Watkins, David; Bhalla, Ajay; Henderson, Steven. A test of the appropriateness of alternative strategic management paradigms in the context of high growth ethnic and non-ethnic family firms. On the Internet at  http://www.igw.unisg.ch/rencontres/band2002/F_12_Watkins.pdf 

3. Harfield, Toby. 1998. Strategic Management and Michael Porter: a postmodern reading. On the Internet at http://www.management.waikato.ac.nz/Research/ejrot/Vol4_1/Vol4articles/harfield.asp

Randles, Sally. 2000. Cities in Evolutionary Perspective: Diversity, reflexivity, scale and the making of economic society in Manchester and Lyon. PhD thesis. Chapter 1. Page 23. On the Internet at http://les1.man.ac.uk/cric/Sally_Randles/phd/chapter1.pdf

Organization Behavior
Business Ethics in an International Environment

Business Be constrained

To what extent should a business be constrained by the moral norms of a society?

A business organization does not exist with the sole purpose of maximizing its profits; it is also supposed to be a socially responsible corporate citizen. Incorporating a sense of respect for social and cultural norms of the society is essential for business organizations if they want to achieve a sustainable future in the industry. Social norms of the society should be followed by every business organization; irrespective of its size, nature of business, type of industry, or geographical location. It becomes even harder for organizations to mold their policies, procedures, and operations according to the cultural, social, and moral norms shared by the members of the society in an international environment.

This paper has been written with a view to discuss the importance of business ethics and moral norms…...

multifactor productivity. The basic concept is that MFP calculates output over all inputs. In the example given, the inputs are labor and capital. The MFP formula is used to measure the change in productivity that results from specific changes in the production process. In addition, the importance of firms studying productivity changes is explained. Firms need to understand the implications of changing different inputs, in order that they may seek the path of profit maximization. Sensitivity analysis to different changes can help with that process. In addition, the MFP concept is useful for firms seeking to maximize other variables besides profit. The same principles behind MFP can be applied broadly in business to ensure that the best decisions are being made and that productivity is being maximized.
The basic principle is that MFP is based on the outputs per a combination of labor and capital (Jaxworks, 2010). This is in…...

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Works Cited:

Banker, R., Datar, S. & Kaplan, R. (no date) Productivity measurement and management accounting. Journal of Accounting, Auditing and Finance. Retrieved November 6, 2011 from  http://astro.temple.edu/~banker/Accounting/32_Productivity%20Measurement%20and%20Management%20Accounting.pdf 

CliffNotes. (2011). Profit maximization. Cliff Notes. Retrieved November 6, 2011 from  http://www.cliffsnotes.com/study_guide/Profit-Maximization.topicArticleId-9789,articleId-9769.html 

Jaxworks. (2010). Multifactor productivity. Jaxworks.com. Retrieved November 6, 2011 from http://www.jaxworks.com/calc5.htm

Lane Report. (2011). Multifactor productivity rose in 14% of detailed manufacturing industries studied in 2009. The Lane Report. Retrieved November 6, 2011 from  http://www.lanereport.com/articles/fastlane_article.cfm?id=multifactor_productivity_rose_in_14_of_detailed_manufacturing_industries_studied_in_2009

Economic Concepts
Purchase of any item may be an ordinary activity for most people, but in economic terms, it is probably one of the most significant activities that govern and shape the business cycle and affects the economic conditions of any organization or country. Purchasing is directly connected with the concept of consumption. The more a person purchases, the higher is the rate of consumption and vice versa. But purchasing or consumption, for that matter, doesn't take place in isolation and several different concepts come into operation when a single consumption activity takes place.

Let us illustrate this with the help of an example. Suppose a couple decides to purchase a car. On the surface this might be an ordinary everyday transaction where money goes from one party to another as the result of which ownership changes. The car becomes the property of the consumer while his money becomes addition asset of…...

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Reference

John Sloman and Mark Sutcliffe, Economics for Business: Prentice Hall

U.S. And Japan economic
I have chosen lifetime employment as the observable feature of Japanese and U.S. economies to be analyzed and described. As we are probably aware, the employment span is quite different in Japan with respect to the United States. In Japan, employees are generally recruited from college or university by the company, usually have a residence period while still in the university and, for the most part, spend their entire life working for the same company. This means that they start their way at the bottom and usually reach higher positions in the company late in their life (over 50 years old anyhow).

In the United States, the procedure is somewhat different. It is quite uncommon for a person to spend more than a few years within a company. If they do so, it is either because they have not found a better position elsewhere (and this means they…...

## Captivating Essay Topics on Corporate Social Responsibility (CSR)

Corporate social responsibility (CSR) has emerged as a pivotal concept in contemporary business practices, shaping the relationship between organizations and their stakeholders. The following essay topics explore diverse aspects of CSR, inviting students to critically examine its implications, challenges, and opportunities:

### 1. CSR as a Strategic Competitive Advantage

How can companies leverage CSR as a competitive differentiator in the marketplace?
Analyze the financial benefits and reputational enhancements associated with strong CSR performance.
Discuss the role of CSR in attracting and retaining top talent and building customer loyalty.

### 2. The Ethics of CSR:....

Yes, there are several essay topics that can present opposing viewpoints on Nestle's corporate level strategies. Some potential essay topics include:

1. "Should Nestle continue to prioritize profit maximization over social responsibility in its corporate strategy?"
2. "Is Nestle's aggressive acquisition strategy beneficial or detrimental to the company's long-term success?"
3. "Does Nestle's focus on expanding into emerging markets help or harm local economies and communities?"
4. "Should Nestle prioritize sustainability and ethical sourcing in its supply chain, even if it means higher costs for consumers?"
5. "Is Nestle's diversification into new product categories a wise strategic move, or does it dilute the company's brand....

Yes, there are many interesting essay topics that present opposing viewpoints on Nestle's corporate level strategies. Some potential topics could include:

1. The ethical implications of Nestle's aggressive marketing strategies, such as targeting low-income communities or promoting unhealthy products to children.
2. The impact of Nestle's focus on cost-cutting and efficiency on product quality and customer satisfaction.
3. The effectiveness of Nestle's strategy of acquiring smaller companies and brands to diversify its product portfolio.
4. The controversy surrounding Nestle's water bottling operations in drought-stricken areas.
5. The balance between Nestle's profit maximization goals and its responsibility to stakeholders, including employees, customers, and the environment.

These topics....