http://www.kenniffonline.com/business-profits-economics/
Why it is often difficult for a business to identify their profit-maximizing prices and output?
For Business Economics Companies Economy Test Test (university level) – Something to do with market structures (:
Is supposed to set the marginal cost is equal to income marginal. Marginal revenue is determined by the intersection of supply and demand curves, but you can not see the supply or demand curves, only the equilibrium prices. Nobody knows how the companies to reach equilibrium, only if they are not there, will go bankrupt.
Milton Friedman on Self-Interest and the Profit Motive 2of2