His article describes profit maximization as if it were the central behavioral assumption of economics.
However, when firms expand to pursue goals other than profit maximization the benefits of these transactions may be lost.
Examples of such assumptions include perfect information, profit maximization and rational choices.
But this is known to lead to results that differ from profit maximization in general.
They have in common responsiveness to factors other than the profit maximization and market position goals of the classic approach.
Today these expectations in most instances go beyond short-term profit maximization.
But they appear to cut corners for the sake of short-term profit maximization.
The assumption that appears to be in jeopardy is profit maximization.
Other examples include profit maximization for a firm, along with various macroeconomic applications.
Before this model was formed, the existing theory of the firm had two main assumptions: profit maximization and perfect knowledge.
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