Answer to Question #233076 in Microeconomics for Anna Paula Quimbra

Question

compute the maximum revenue combinations of products using the maximum revenue criterion (, )

Answer 1

For the maximum optimum matching condition, maximum profit is an appropriate criterion, not the conventional criteria of minimum cost or maximum production rate.

For example - the determination of maximum profit cutting speed by application of fundamental economic principle that maximum profit occurs at the production rate where the marginal revenue is equal to the marginal cost.The effect of demand function, feed and cost and time parameters on the determination of the maximum profit cutting speed are analyzed.