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This paper considers the merits of two classes of profit maximization problems, those involving perfectly competitive … simple algorithm that generates profit maximization problems that are theoretically interesting, economically plausible and …
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no broad agreement on what ought to be a firm's objective. It is shown that ex-post, profit maximization is consistent …, every coalition of a firm's shareholders in that period and state approves a profit-maximizing production plan. This result … with a combination of both. This result can help provide a foundation for formulating a theory of the firm when markets are …
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This paper presents a classroom experiment on pricing strategies available to monopolists. Each student makes production decisions as a monopolist during the experiment; learning from his/her own experiences what it means to be a price searcher. Full information is provided on cost conditions,...
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