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According to textbook economics, this is true. High profits make happy shareholders. The more monopolistic a company can behave, the higher profits will be. A good example would be Microsoft. This company had the "honour" of having to pay the highest fine in the history of the Antitrust commission in Brussels, at least at that time. Remember that Neelie Kroes also fined Intel with a 1.45 billion USD. Another form of illegal keeping prices high is via cartels..

Or maybe not? If company A makes profits, then it is absolutely sure that direct competitors will enter the market. In that case, profits would decrease. In order to prevent this, company A produces as much and as efficiently as possible so profits are slightly above 0. Now, it still has first mover advantage, can still pay its bills and invest but most importantly: nobody will enter.

Being green and socially responsible are new goals. At first they might seem to lower profits because of the higher costs involved. However, a green and responsible image can attract new customers because of growing environmental awareness. On top of that, green initiatives are being subsidized by government. Study Triodos Bank, this green bank is doing very well despite the crisis! Their website is www.triodos.com

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Q: Basically every firm has only one goal profit maximization true or false?
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