View Full Version : Monopoly maximizing profits
Vivi1987
Mar 19, 2008, 03:21 AM
If a monopoly is attemping to maximize profits, will they maximize their revenues or profit per unit?
Ema92
Mar 19, 2008, 04:54 AM
Well it depends on the tactic they take..
A low price strategy could increase sales and make smaller competiton unable to compete etc. this would maximize revenues.
Though a high price strategy could also increase sales due to snob value this would maximize profir per unit.
Vivi1987
Mar 19, 2008, 05:01 AM
If a monopoly is attemping to maximize profits, will they maximize their revenues or profit per unit?
But if you had to choose between these 2, which one would suit the best