The reason that profit maximization inappropriate as well as the meaning of wealth maximization. Introduction: Profit maximization: It refers to a situation in which the firm wants to attain a certain level of output with a given level of input that may lead to the maximum level of profits. Wealth maximization: It is a concept that focuses on the overall development of the business and not just increasing the level of profit.

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Chapter 1, Problem 9DQ

Summary Introduction

To explain: The reason that profit maximization inappropriate as well as the meaning of wealth maximization.

Introduction:

Profit maximization:

It refers to a situation in which the firm wants to attain a certain level of output with a given level of input that may lead to the maximum level of profits.

Wealth maximization:

It is a concept that focuses on the overall development of the business and not just increasing the level of profit.

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