It doesn’t matter whether you are a startup or a multinational company, every business is looking to grow its profits. Profit maximization is the process that companies undergo in order to determine the best output and price levels in order to achieve its goals.
Profit maximization is one of the fundamental assumptions of economic theory. It will be achieved when a firm reaches the stage of equilibrium. A firm is said to have reached equilibrium when it has no need to change its level of output, either an increase or decrease, in order to maximize profit.
Profit maximization is a good thing for a company, but can be a bad thing for consumers if the company starts to use cheaper products or decides to raise prices as a way to maximize profits. To learn more read this article.