....... concept of business emphasizes on profit maximization??
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Answer:
The general rule is that the firm maximizes profit by producing that quantity of output where marginal revenue equals marginal cost. ... To maximize profit the firm should increase usage of the input "up to the point where the input's marginal revenue product equals its marginal costs".
PROFIT MAXIMIZATION
Profit maximization emphasizes on the concept of rate of change of economic quantities in business.
KEY TAKEAWAYS OF PROFIT MAXIMIZATION:
* Profit maximization is a crucial behavioural assumption in neoclassical economic theory, as it determines how companies make production and price decisions.
* Economic efficiency, defined as the efficient allocation of resources in the face of relative scarcity, is thought to be driven by enterprises' profit-maximizing conduct. It is expected that achieving economic, or allocative, efficiency will maximize the utility or welfare of both people and society.
* The cornerstone of utilitarian theory, which seeks for the greatest good for the largest number of people, is the dual fulfilment of maximal individual and societal gain.
* Profit maximization is the raison d'être of the American firm and the recognized principal purpose in US economic activity, therefore utilitarian reasoning is ingrained culturally and legally in the Anglo-American setting.