Meaning & use
profit maximization
Last updated
Meaning
noununcountable
The process or goal of making as much profit as possible from a business activity.
Grammar: Used as a singular abstract noun; it does not take 'a' or a plural form.
Patterns
- profit maximization in something
- the profit maximization of something
The firm's main objective is profit maximization, even if it means cutting costs.
Economists study profit maximization to understand how companies set prices.
Their strategy focused on profit maximization rather than market share.
Common combinations
- goal of profit maximization
- The goal of profit maximization often conflicts with environmental concerns.
- long-term profit maximization
- Long-term profit maximization may require short-term losses.
- profit maximization strategy
- They adopted a profit maximization strategy that raised prices.
- achieve profit maximization
- The company achieved profit maximization by reducing waste.
Synonyms and how they differ
- profit seeking
- Focuses on the desire for profit rather than the systematic process of maximizing it.
Opposites
Word family
Commonly confused: profit maximization or revenue maximization?
profit maximization vs revenue maximization
Revenue maximization means making the most total sales income, while profit maximization means making the most money after costs.
Practice
The company's board decided that ______ was more important than increasing market share.
Choose one answer.
'Profit maximization' is an uncountable noun and fits as the subject. 'Profit maximizing' is a verb form or adjective, and 'a profit maximization' is wrong because the noun is uncountable.
Make it your own
Write a sentence using “profit maximization”, then check it and compare it with the examples above.