Profit Maximization: An Actual or Theoretical Objective?

Profits are necessary to day both for the capitalist socialist and any type of economy to survive. Multinationals and giant companies have the profit motive and therefore maximizing profit as the base of their operations. This also goes under a new label namely stock holder gain. This is a form of profits that happens when the profit margins of the company go up and the market reflects these profits. Therefore profit maximization is or rather ought to be actual. To enter the argument therefore it is necessary to examine what profit is and how it is maximized.

Theories of Profit and Profit Maximization:

A firm survives if it can provide for the costs of production, the factors of production and then have a surplus for the entrepreneur. Profits are the foundation of the capitalist economy. Profit is based on the desire for personal...
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