# Tag Info

Accepted

• 4,188

### Opportunity profits vs. opportunity costs

First off some terminology: opportunity cost are not necessarily avoided profit. Profit is a term that is used for firms, but opportunity cost does not just apply to firms. Moreover as @clinical coder ...
• 2,373

### Why does the profit function in standard neoclassical theory have exactly one maximum?

Mathematically, most neoclassical models assume that the profits are concave. This guaranties the uniqueness of the maximum. In economic terms, the Neoclassical theory usually assumes that the law of ...
• 4,188

### Utility function_maximazation

This is quite a loaded question you asked here. I answered it in a few parts: first I introduce you to the idea of Robinson's economy, then I add a company to the equation (as you also asked about the ...
• 915
Accepted

### How to find the maximum profit in a graph?

Short answer: Shift the profit line parallel downward until it only touches the loss function in only one point. That's the point where the maximum gap occurs. Reason: The maximum occurs where ...
• 6,238