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  1. Profit Maximization

    by , Jan 30th, 2012 at 07:34 PM
    I'm thinking way ahead of the process I'm currently in although I thought I'd keep this written down in case I forget it.

    profit maximization occurs when marginal revenue equals marginal cost.

    Since I'm dealing with digital items my marginal costs should remain relatively the same throughout. Basically the change in cost would be = to 0 so profit maximization for me in this situation would be at $5 per unit sold since total marginal change in revenue from 5 to 6 is 0. ...
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