Key Concepts: Profit Maximization, Marginal Revenue and Marginal Cost, Selling Environments or Market Structure

Fortune 500—Fastest Growing Companies (Profits)

Click on the "Top Performing Companies" link and review company ranking information under the "Most Profitable Companies (Profits)."

• Identify the current top three most profitable Fortune 500 companies. Assess how they "add value."
• Which companies have a relatively low "500 Revenues" ranking and yet managed to rank high on the "Most Profitable" list? What does this relationship indicate? (Hint: consider market structures)
• Review today's list of "Earnings Announcements" at Yahoo! Finance. Why are financial investors interested in the earnings report (e.g. EPS—Earnings per Share)? What role does economic profit serve in the competitive market?