The Responses of an Organization for the Increase in Wage Rates: Profit Maximization Cases

Mohajan, Devajit and Mohajan, Haradhan (2023): The Responses of an Organization for the Increase in Wage Rates: Profit Maximization Cases. Published in: Law and Economy , Vol. 2, No. 8 (3 August 2023): pp. 14-29.

Abstract

Every organization expects to achieve maximum profit for its survival economic environment. To develop profit maximization strategy an organization must be sincere in economic sensitivity analysis. In this study sensitivity analysis is inspected to predict about the economic situation for the efficient production of the organization. Here scientific based production policy is indicated subject to a budget constraint, using Lagrange multiplier technique.

• Item Type: MPRA Paper
• Language: English
• Keywords: Profit maximization, Lagrange multiplier, wage, sensitivity analysis
• Subjects: C - Mathematical and Quantitative Methods > C3 - Multiple or Simultaneous Equation Models ; Multiple Variables; C - Mathematical and Quantitative Methods > C5 - Econometric Modeling > C54 - Quantitative Policy Modeling; C - Mathematical and Quantitative Methods > C6 - Mathematical Methods ; Programming Models ; Mathematical and Simulation Modeling > C61 - Optimization Techniques ; Programming Models ; Dynamic Analysis; C - Mathematical and Quantitative Methods > C6 - Mathematical Methods ; Programming Models ; Mathematical and Simulation Modeling > C65 - Miscellaneous Mathematical Tools; C - Mathematical and Quantitative Methods > C6 - Mathematical Methods ; Programming Models ; Mathematical and Simulation Modeling > C67 - Input-Output Models; C - Mathematical and Quantitative Methods > C8 - Data Collection and Data Estimation Methodology ; Computer Programs > C81 - Methodology for Collecting, Estimating, and Organizing Microeconomic Data ; Data Access; D - Microeconomics > D6 - Welfare Economics; I - Health, Education, and Welfare > I3 - Welfare, Well-Being, and Poverty; J - Labor and Demographic Economics > J3 - Wages, Compensation, and Labor Costs; J - Labor and Demographic Economics > J3 - Wages, Compensation, and Labor Costs > J31 - Wage Level and Structure ; Wage Differentials

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