Profit Maximization and Imperfect Competition

Birgit Grodal

Chapter 1 in Economics in a Changing World, 1996, pp 3-22 from Palgrave Macmillan

Abstract: Abstract In most economic literature, firms are assumed to maximize profits. If there is perfect competition and a complete market structure in the economy, this objective of firms has a sound economic interpretation. Profit maximization is well defined, it serves the needs of the shareholders, and shareholders unanimously instruct the managers of firms to maximize profits.

Keywords: Production Plan; Relative Price; Price System; General Equilibrium Model; Profit Function (search for similar items in EconPapers)
Date: 1996
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Citations: View citations in EconPapers (15)

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DOI: 10.1007/978-1-349-25168-1_1

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