Profit maximization objectives lead to high prices and monopolies-and are generally not in the public interest.

Question

Quizplus · Accepted Answer

Profit maximization does not necessarily lead to high prices and monopolies. Competitive markets can also drive companies to seek profit maximization through efficiency, innovation, and improving customer value, which can benefit the public interest by providing better products and services at competitive prices. Monopolies and high prices are more often the result of market failures or lack of competition, not the inherent result of profit maximization objectives.

Profit Maximization Objectives Lead to High Prices and Monopolies-And Are