One of the most important functions of business is to sell goods and services for profit. In the economic view of the firm, business decision makers are assumed to desire as large a profit as possible for their organization, and a good society develops conditions for businesses to produce and sell valuable products and services as efficiently as possible in order to improve the quality of human life. In this economic view, opportunities to make profits are signals that society's resources can be used more efficiently.

For a business, profit refers to the amount of revenue it receives from customers in excess of the costs it incurs over a defined period of time. This profit is a form of wealth that belongs to the owners of ...

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