Profit maximization as the goal of the firm often ignores social and environmental impacts, employee welfare, and long-term sustainability. By focusing solely on short-term financial gains, firms may overlook the importance of ethical practices, stakeholder interests, and the potential consequences of their actions on the community and environment. Additionally, this narrow focus can lead to a neglect of innovation and quality, ultimately jeopardizing the firm's future success.
The goals are: 1) Profit Maximisation 2) Cost minimisation 3) Technological Advancement 4) Return on investment 5) Customer Satisfaction. Bas that's enough......
maximize profit
Large number of sellers and buyers in the groupThe products of the sellers are differentiated, yet they are close substitutes of one another.There is free entry and exit of firms in the groupThe goal of the firm is profit maximisation, both in the short run and in the long runThe prices of factors and technology are given
to produce enough goods to meet demand while making a profit
Profit maximization is often criticized as an inappropriate goal for a firm because it can lead to short-term thinking at the expense of long-term sustainability. Focusing solely on profits may neglect other important factors such as employee welfare, environmental responsibility, and customer satisfaction, which are crucial for maintaining a positive reputation and fostering loyalty. Additionally, prioritizing profit can create ethical dilemmas and harm stakeholder relationships, ultimately jeopardizing the firm's future success. A more balanced approach, considering various stakeholders' interests, often leads to sustainable growth and stability.
is this in relation to energy markets?
The goals are: 1) Profit Maximisation 2) Cost minimisation 3) Technological Advancement 4) Return on investment 5) Customer Satisfaction. Bas that's enough......
Problems involved with the use of profit maximization as the goal of the firm due to numbers of reasons. 1 It ignore the timing of return. 2 It ignores the timing of returns. 3 It ignores the risk.
profit maximization &wealth maximization of shareholders.
A goal of firm isn't always profit driven, it can be any cause. Profit maximization is revenue driven, making more money is it focus.
maximize profit
Shareholder wealth maximization is considered to be a more appropriate goal for the firm than profit maximization
Large number of sellers and buyers in the groupThe products of the sellers are differentiated, yet they are close substitutes of one another.There is free entry and exit of firms in the groupThe goal of the firm is profit maximisation, both in the short run and in the long runThe prices of factors and technology are given
Baumol suggested sales revenue maximisation as an alternative goal to profit maximisation. He presented two basic models: A static single–period model and a multi-period dynamic model of growth of sales revenue maximisation. Each model has two versions, one with advertising activities and another without.
Large number of sellers and buyers in the groupThe products of the sellers are differentiated, yet they are close substitutes of one another.There is free entry and exit of firms in the groupThe goal of the firm is profit maximisation, both in the short run and in the long runThe prices of factors and technology are given
Uncertainity and timing are some of the problems
A goal a firm may have that is not to maximise profit or sales, but a goal to help the community for example fundrasing for a local charity. These goals could also be to help the enviroment.