Profit Maximization vs Wealth Maximization
Feature | Profit Maximization | Wealth Maximization |
---|---|---|
Focus | Short-term earnings | Long-term value |
Planning Horizon | Immediate profits | Long-term growth |
Risk Management | Minimizes expenses, avoids hedges | Works on risk mitigation |
Pricing | High prices for maximum margins | Lower prices to build market share |
Capacity | Enough for current sales | More for long-term projections |