Is profit maximization consistent with the self-interest of corporate owners, corporate managers, and employees?

 

Profit Maximization

One of the proclaimed benefits of free market capitalism relative to other economic systems or government production is that a profit incentive gives producers the incentive to use resources efficiently in order to produce at the lowest cost.  Is profit maximization consistent with the self-interest of corporate owners, corporate managers, and employees? How well do you think the assumption that firms are “profit-maximizers” works in reality?

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