A profit-maximizing firm focuses on raising net earnings and proving profitability to investors whenever possible. While businesses often fall into profit-seeking behaviors naturally, there are other ...

Each year when I complete my federal income tax return, Turbotax tells me my average tax rate—how much tax I owe measured as a percentage of my total income. But it would be better if I learned my ...

Question: What is the difference between marginal and effective tax rates, and which is more important? Answer: The most straightforward way to think of the difference is that your marginal tax rate ...

Discover what the marginal cost of funds is, how it affects capital structure decisions, and why it matters for financial managers in choosing funding options.

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...

Accurate cost measurement is critical to properly pricing goods or services. Businesses with accurate cost measurement know whether they are making a profit on current goods and know how to judge ...

Marginal cost is the added expense of producing one more unit. A horizontal marginal cost curve indicates consistent production costs. Businesses may aim to maintain horizontal costs to stabilize ...

Marginal analysis was the heart of early Austrian economics and was quickly adopted into mainstream economics, where it is central to modern microeconomic analysis. Amazingly, many people in business ...