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PROFIT MAXIMISATION—CAN IT BE JUSTIFIED?
Author(s) -
RäDEL F. E.
Publication year - 1969
Publication title -
south african journal of economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.502
H-Index - 31
eISSN - 1813-6982
pISSN - 0038-2280
DOI - 10.1111/j.1813-6982.1969.tb02498.x
Subject(s) - economics , profit (economics) , marginal cost , marginal profit , microeconomics , mathematical economics , key (lock) , econometrics , computer science , computer security
IN THE TRADITIONAL theory the firm's raison d'être is represented by just one single goal, viz. profit maximisation as an explanation and, in support of this, exact quantitative models by means of marginal analysis were developed indicating under which conditions profit maximisation was achieved. In fact, the models served “as a wonderful key which opens all doors to the understanding of entrepreneurial behaviour. 1