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Pricing and the flat‐maximum principle
Author(s) -
Silver Mick,
Tull Donald
Publication year - 1986
Publication title -
managerial and decision economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.288
H-Index - 51
eISSN - 1099-1468
pISSN - 0143-6570
DOI - 10.1002/mde.4090070309
Subject(s) - flatness (cosmology) , economics , profit (economics) , mathematical economics , position (finance) , microeconomics , physics , finance , cosmology , quantum mechanics
Profit‐maximizing price conditions are well established in economic theory. However, less attention has been directed to the effect on profits of deviations in price from the profit maximizing position. The conditions governing the emergence of a flat‐maximum principle are established for both an absolute and relative concept of flatness.