because you get more money
It is necessary for the survival of the business and for the growth of the business.
It act as a signal to producer to increase or decrease the rate of output or to enter or to leave an industry.
It is a reward foe entrepreneurial activity, including risk taking and innovation.
A firm can fulfil its social responsibility only when it has sufficient profit for that.
Profit maximization is important because it ensures the long-term sustainability and growth of a business. By maximizing profits, a company can generate more resources to invest in research and development, expand its operations, and acquire new assets. Additionally, higher profits enable businesses to offer competitive salaries, provide better benefits to employees, and ultimately create more job opportunities.
Under what conditions might profit maximization not lead to stock price maximization?"
Not necessarily
Profit maximization increase the graph of outputs.
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Profit maximization can be both good or bad. Done correctly, profit maximization helps the company provide great products and services for customers.
sales maximization technique is generally used in scale industries where base of the expenses is largelly fixed and where variable costs are limited. on the other hand profit maximization technique are used by variety of industries. total output is higher in sales maximization as compared to profit maximization
discount rate
Shareholder wealth maximization is considered to be a more appropriate goal for the firm than profit maximization
WHAT IS THE PROFIT MAXIMISATION?
differentiate between value for money and profit maximization
If the company is public listed (trades in the stock market) their aim is shareholder wealth maximization whereas for a privately owned firm a profit maximization objective is appropriate.
it is operating cost