Question

What is the difference between profit maximization and revenue maximization

Answer 1

The main difference between sales maximization and profit maximization is the financial intention. ... A goal of maximizing revenue does not necessarily produce profits, because companies often sell products at a loss to generate revenue.

Answer 2

Explanation:

Revenue measures the amount of income a business generates through the sale of its products or services, while profit measures the income remaining after costs, expenses and taxes are taken out. Revenue maximization often involves reducing prices to increase the total number of sales.