There are economists like Denjaminlliggins, Melvin Redder and Tibor Scitovsky who say that maximization of satisfaction or utility is the over-riding consideration which governs businessman’s behaviour. This goal is also called l’rcfc cnce Function These economists point out that profit maximization docs not necessarily result in maximization of satisfaction. In their view, we should not only consider the satisfaction that an entrepreneur gets from his material possessions which he may get from his profits, but also the satisfaction which he may get from the leisure that he is able 10 enjoy. The entrepreneur’s attitude towards work and leisure is a very important consideration if the entrepreneur is to maximize his utility or satisfaction. According to this view, an entrepreneur would try to reach the highest possible indifference curve in order to derive the maximum possible satisfaction and this will happen where his net profits curve is tangent to indifference curve. We may, however, add that to assume entrepreneur’s willingness to work as independent of his income seems to be an unrealistic assumption. Generally, it is the income motives which is a more powerful motive that sways the businessman’s behaviour. But as Scitovsky has pointed out “The assumption that the entrepreneur’s willingness to work is independent of his income need not imply that he is not interested in the materials rewards of his work. It may also mean that he is so keen making money that his ambition cannot be damped by a rise in income. . . .. This is likely to be the case partly because the desire for success is more insatiable than the demand for the material goods and partly because it is not a high but a rising income.
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