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Unit-18: Profit Maximization and Full Cost Pricing Theories

18.5 Review Questions Notes

1. What is the theory of profit maximization?
2. Explain the theory of full cost or average cost pricing.
3. Comment on “Andrews’ explanation”.
4. Describe the criticism of theory of full cost pricing.

Answers: Self Assessment
1. Profit 2. Excess 3. Maximization 4. (a)
5. (b) 6. (a) 7. True 8. False
9. True 10. False

18.6 Further Readings

1. Microeconomics: An advanced Treaties—S.P.S. Chauhan, P.H.I. Learning.

2. Microeconomics: Behaviour, Institutions and Evolution— Sampool Bowels, Oxford
University Press, 2004.
3. Microeconomics: Principles, Applications and Tools— Sanjay Basotiya, DND Publications,
2001.

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