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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.

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Q: Is profit maximization is good or bad for society?
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Is stock price maximization good or bad for the society?

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What is profit maximization of corporation?

Profit Maximization is a process that companies undergo to determine the best output and price levels in order to maximize its return. Companies usually adjust production costs, sale prices, and output levels as a way of reaching its profit goal. Profit maximization is a good thing for a company, but can be a bad thing for consumers if the company starts to use cheaper products or decides to raise prices.


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The same actions that maximize stock prices also benefit society. Stock price maximization requires efficient, low cost operations that produce high quality goods and services at the lowest possible cost. Stock price maximization requires the development of products and services that consumers want and need, so the profit motive leads to new technology, new products and new jobs. Also, stock price maximization necessitates efficient and courteous service, adequate stocks of merchandise and well located business establishments.


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