Evaluate the view that the main goal of firms will always be profit maximization.

Evaluate the view that the main goal of firms will always be profit maximization.

Expert Solution

Profit maximization applies to the maximization of the company's dollar profits. Under the goal of income maximization, corporate companies are seeking to follow certain investment ventures that produce greater returns and abandon all such unprofitable practices. The input-output relationship is critical in optimizing income, either input is optimized to produce a given amount of benefit or output is maximized with a given amount of input. This business target therefore increases profitability and boosts the organization's performance.

Just those companies who are able to make income succeed in a tough market. And they're just trying to get things as big as possible. All other priorities are subject to this primary intent.The income maximization goal is a company's time-honored strategy and there is no definitive or unambiguous proof against that purpose.

Although not perfect, profit is the most effective and reliable measure of a firm 's effectiveness

Rahul Sunny answered 2 years ago

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