TARGET FUNCTION AND THE EQUILIBRIUM POSITION OF ISLAMIC ENTERPRISES Cover Image

CILJNA FUNKCIJA I RAVNOTEŽNI POLOŽAJ ISLAMSKOG PREDUZEĆA
TARGET FUNCTION AND THE EQUILIBRIUM POSITION OF ISLAMIC ENTERPRISES

Author(s): Mehmed Meta
Subject(s): Economy
Published by: Интернационални Универзитет у Новом Пазару
Keywords: Islamic Company; a utility function; zakat; alms; demand function; Kur'an; marginal revenue; marginal cost

Summary/Abstract: Egotistical goals and maximizing his own pleasure are the basic postulates on which traditional and modern economic theory in the West explains microeconomic behaviour of economic entities (producers, consumers, employees, managers, company owners, investors). Expressed egoism, which is manifested through care for himself makes a basic foundation on which these theoretical approaches build models of supply, demand, explain the market equilibrium output, markets, production factors, and the like. Western microeconomic theory explains the behaviour of a rational man, the person or institution that he does not care about the interests of others and does not take it as a parameter of his action. This does not exclude the possibility that in the economic reality some of them, to a greater or lesser extent, do not respect the interests of others, but such an approach does have its institutional foundations, from an Islamic perspective. Reasons for altruistic actions of un-Islamic entities, entities whose behaviour is not in line with Islamic principles and norms, can be of human, political or social nature. The aim of this study is that, if not in its entirety, then at least in certain fragments indicate the economic implications of firm behaviour based on Islamic principles and favouring altruistic goals of the economic position of decision-making in them.

  • Issue Year: 2014
  • Issue No: 06
  • Page Range: 41-52
  • Page Count: 12
  • Language: Bosnian