Alternative theories of the firm have proven to be more satisfactory than the theory of profit maximization.

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The theory of profit maximization remains a fundamental and widely accepted concept in economics, serving as the basis for understanding firm behavior. Alternative theories provide valuable insights and address specific scenarios or limitations of the profit maximization model, but none have universally displaced it as the core explanation for why firms exist and how they operate.

Alternative Theories of the Firm Have Proven to Be More