July 2024
Intermediate to advanced
6 pages
16m
English
Content preview from Make a Stronger Business Case for Sustainability
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The Classic Prot Maximization Framework
Managers often assume that the increased cost to produce more sustainable products and services will require charging a
green premium, but relying on an increased willingness to pay isn’t the only way to maintain pro"ts. The well-accepted pro"t
maximization method "nds the price and quantity that maximizes pro"ts given the cost and demand curves (when searching for
a unique price rather than a series of prices). The shaded rectangle represents this maximum pro"t.
MIMITT SLOSLOAN MANAAN MANAGEMENT REVIEWGEMENT REVIEW
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