Why would a firm choose to max revenue as opposed to max profits?
Answers: Many reasons, such as to gain market share, or to gain economies of scale from the increased volume in order to reduce fixed cost per unit.
If this works the increased revenues will eventually result in higher profits, assuming the firm can achieve a sustainable competitive advantage.
gain market share
make a competitor go bankrupt
Is the stock bazaar governing to an eventual crash?
just wondering =)Answers: The PPT ( plunge protection squad ) set up by President Ronald Reagan after the 1987 crash which I painfully lived through, and the PPT will do everything they can to preserve this equity market alive and the titantic from sinking. They will founder. The time has come for a apposite old fashioned debt cleansing, Detoxification of adjectives the debt and hitting the reset button. We will all quality the pain and become stronger after it is over and done next to. Yes the crash is inevitable. Ugh...
If anyone really knew the answer, they would not be posting it here or anywhere. They would hang about for the day past the 'magic day' and nouns up on highly leveraged short plays (say short index option or futures) and cash within themselves.
How do I multiply cost font for a stock?
Say if I buy 10 shares of a stock at $5 per share and the commission is $7. Then I sold the 10 shares at $7. How do I calculate my cost reason?I'm trying to do my tax return and this is the first time it involves stocks.
Answers: Dutch auction price 10x7-7=63
cost 10x5+7=57
gain 63-57 =6
The commission is added to the cost. In your example, your cost basis would be $57. Good luck!