One can become very cynical about the motives of capitalism and companies. What's important to think about though is that the businesses are run by people, who have various motives. While these motives often show themselves in terms of people seeking financial reward, the true motives are usually about ego, meeting challenges and mental stimulation. … Read more

I would disagree with the first answer stating that 'profit is the main aim of a business organisation'. Generating a profit is a necessary part of a business. Without it you are effectively asking somebody else (the shareholders, the bank) to subsidise the business's activities. With profit, the business has choices about what it does … Read more

Sounds like a homework question?!Marginal revenue is the extra revenue a firm gets from making a change, in this case adding more labour. The 'marginal revenue product of labour' is the extra revenue from each unit of labour (a worker). Firms would use it to work out the maximum they can afford to pay in … Read more