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  2. Profit maximization - Wikipedia

    en.wikipedia.org/wiki/Profit_maximization

    Using the diagram illustrating the total cost–total revenue perspective, the firm maximizes profit at the point where the slopes of the total cost line and total revenue line are equal. [4] An increase in fixed cost would cause the total cost curve to shift up rigidly by the amount of the change. [ 4 ]

  3. Structure–conduct–performance paradigm - Wikipedia

    en.wikipedia.org/wiki/Structure–conduct...

    The structure–conduct–performance (SCP) paradigm, first published by economists Edward Chamberlin and Joan Robinson in 1933 [1] and subsequently developed by Joe S. Bain, is a model in industrial organization economics that offers a causal theoretical explanation for firm performance through economic conduct on incomplete markets.

  4. Theory of the firm - Wikipedia

    en.wikipedia.org/wiki/Theory_of_the_firm

    The First World War period saw a change of emphasis in economic theory away from industry-level analysis which mainly included analyzing markets to analysis at the level of the firm, as it became increasingly clear that perfect competition was no longer an adequate model of how firms behaved.

  5. A Behavioral Theory of the Firm - Wikipedia

    en.wikipedia.org/wiki/A_Behavioral_Theory_of_the...

    The virtual assembly of the firm, with the decision-making process as the unit, for the purpose of predicting their behaviour is highly questioned by critics. There has also been staunch support for profit maximization rather than satisficing behaviour, which is one of the core elements of the model. [13]

  6. DuPont analysis - Wikipedia

    en.wikipedia.org/wiki/DuPont_analysis

    Graphical representation of DuPont analysis. DuPont analysis (also known as the DuPont identity, DuPont equation, DuPont framework, DuPont model, DuPont method or DuPont system) is a tool used in financial analysis, where return on equity (ROE) is separated into its component parts.

  7. Profit pools - Wikipedia

    en.wikipedia.org/wiki/Profit_pools

    The Profit pools is a strategy model that can be used to help managers or companies focus on profits, rather than on revenue growth. [1] The method was conceived by Orit Gadiesh and James L. Gilbert, both consultants at Bain & Co. presented the following definitions: "the total profits earned at all points along the value chain of an industry.

  8. Satisficing - Wikipedia

    en.wikipedia.org/wiki/Satisficing

    Satisficing is a decision-making strategy or cognitive heuristic that entails searching through the available alternatives until an acceptability threshold is met, without necessarily maximizing any specific objective. [1]

  9. Monopolistic competition - Wikipedia

    en.wikipedia.org/wiki/Monopolistic_competition

    The company maximises its profits and produces a quantity where the company's marginal revenue (MR) is equal to its marginal cost (MC). The company is able to collect a price based on the average revenue (AR) curve. The difference between the company's average revenue and average cost, multiplied by the quantity sold (Qs), gives the total profit.

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