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Sales Maximization and Profit Maximization: A Note on the Decision of a Sales Maximizer to the Increase of Per Unit Cost

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. Copyright 2007 The Authors Journal compilation 2007 Blackwell Publishing Ltd