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Profit Maximization & Wealth Maximization

PRESENTED BY B.GANESH

Profit Maximization:

Profit maximization refers to the process whereby companies focus on maximizing profit or getting the best possible profit in their particular kind of business.

Wealth Maximization

A process that companies undergo to determine the best out put and price levels in order to maximize its return.

Advantages Economic Survival: Measurement Standard: Ignores the Risk: Haziness of the concept Profit: Ignores Time Value of Money: Social and Economic Welfare:

Total revenue - total cost method

Marginal revenue-marginal cost method

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