What if a business does not maximize profits? Then it is either not making the products that consumers want the most, or it is not producing its products at the lowest cost. In either case, consumers are harmed. Any argument against "profit maximization" is an argument against consumer welfare.
Maximizing consumer welfare is the ultimate justification for an economy. Consumers are of course also workers and voters.
That’s from Professor Paul H. Rubin of the Emory University writing at the Wall Street Journal
1 comment:
Yes you're right. "Profits are about Consumer Welfare". Profit is useless when it can't meet the standards and quantity needed of the consumers.
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