Thursday, August 11, 2011

Critically discuss the proposition that the firms’ only objective is to maximise profits?

Hopefully that is their only objective. When a company works harder and smarter to gain the competitive edge and win more market share, it benefits everyone. If it weren't for this profit motive, what would be the point? Love of making widgets? Without the incentive to earn greater profits we would be living in a world like Cuba, and still driving automobiles manufactured 50 years ago. Cubans don't have to worry about profit motive...in fact they don't have much motivation at all. Motivation is everything when it comes to production. The profit motive seems to be the most powerful of all.

No comments:

Post a Comment