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In Essence, What Is the Rational Approach Trying to Maximize

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In essence, what is the rational approach trying to maximize?


Definitions:

Total Revenues

The total amount of income generated by the sale of goods or services before any expenses are subtracted.

Perfectly Inelastic

A market demand situation where the quantity demanded remains constant regardless of changes in price.

Quantity Supplied

The amount of a commodity that is made available for sale by producers at a certain price level, over a given period.

Price-Elasticity Coefficient

A gauge for understanding how the quantity of a product demanded reacts to price adjustments.

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