SALES MAXIMIZATION AND PROFIT MAXIMIZATION: A NOTE ON THE DECISION OF A SALES MAXIMIZER TO THE INCREASE OF PER UNIT COST
Ke Li, Shuntian Yao · Pacific Economic Review · 2007
Abstract. In this paper, the authors compare the behaviours of a sales revenue maximizer with that of a profit maximizer in their response to an increase of the per unit production cost or a per unit tax being imposed. A common mistake in currently used textbooks is pointed out, and a new proposition is proposed for replacing a false statement there.