Question by  Anonymous

Are optimum profits the same as maximum profits?

Why are companies interested in profits?


Answer by  gsensel (19)

Companies are interested in profits because that is how much money they earn. Profits can be reinvested in new products or services improving the company. If there is a loss opposed to profit the company will have a decrease in money leading to cutbacks in the services offered.


Answer by  ruth (407)

Optimum profits means the best possible. Maximum means the most. Sometimes the most is not the best, making the most profit could result in draining the market quickly or using immoral business practices. Optimum profits make enough money to sustain the company over a long time.


Answer by  MartinFarmakov (285)

Optimum is not the same as maximum. The maximum profits are at minimum level input and maximum output.In optimum level it is a point in which with a middle border of used inputs you make output that is enough just to cover the costs of making that output.


Answer by  John (9008)

The whole point of business is earning money. Thus, every company wants a profit. Maximum profit and optimum profit can be identical, but can differ. Maximum profit is the absolute most that can be made, regardless of harm to the company. Optimum profit is the highest that can be maintained.

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