Learn how monopolies maximize profits by equating marginal cost and revenue. Discover the economic principles guiding price and output decisions in monopoly markets.

Will Kenton is an expert on the economy and investing laws and regulations. He previously held senior editorial roles at Investopedia and Kapitall Wire and holds a MA in Economics from The New School ...

One key decision every business has to make is how much of its goods or services to make available to customers. Demand functions will give you a sense of how much revenue a business can bring in ...

Marginal cost helps predict company profit by analyzing cost to produce extra units. Investors use the gap between marginal cost and revenue to assess profitability. Technology firms, due to low ...

A profit-maximizing firm focuses on raising net earnings and proving profitability to investors whenever possible. While businesses often fall into profit-seeking behaviors naturally, there are other ...

Businesses of all sizes, including small businesses, can benefit from a basic understanding of specific economic concepts. Beyond the basic concepts of supply and demand, a small business owner must ...

Estimate demand function to understand initial product pricing vs. quantity. Use derivative for the revenue equation to find marginal revenue changes. Marginal revenue derivative is a tool to guide ...