Market participants strive for profit maximization from "summary" of Business Cycles and Equilibrium by Fischer Black
Market participants are individuals or entities that engage in buying and selling activities within a given market. These participants are driven by the desire to maximize their profits through their various transactions. The pursuit of profit maximization is a fundamental principle that guides the behavior of market participants in any economic system. The concept of profit maximization is rooted in the idea that individuals and organizations seek to achieve the highest possible return on their investments or resources. This entails making decisions that are aimed at increasing revenues, reducing costs, and ultimately generating the greatest amount of profit. Market participants are constantly evaluating different opportunities and risks in order to identify the most profitable course of action. In the context of business cycles and equilibrium, the drive for profit maximization plays a crucial role in shaping the overall dynamics of the market. As market participants compete with one another to capture profitable opportunities, they contrib...
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