خلاصه ماشینی:
Such behavior by the profit maximizing firm has several adverse impacts: first, it imposes a social—welfare loss _(or efficiency loss) by producing a P>MC; second, it redistributes income from consumers to shareholders of the monopolist firm; third, it misallocates resources through the restriction of output.
) Thus, a Muslim producer (single seller) is expected to be concerned about the welfare of the society, and therefore willing to partially sacrifice his or her own profits in order to avoid any loss in the welfare of the Muslim society in accordance with the preaching of the Messenger (S_AAS), as he said: “Whoever is not concerned about Muslims’ affairs is not a Muslim” This behavioral approach of sacrificing profits for the benefit of society when it is needed has been mentioned by Siddiqi (10), who says: “In an Islamic society behaviour of all economic agents is expected to be socially oriented, ready to sacrifice profits for the social good, if and when the social priorities so require.
Section 2, the main core of this study, provides the formulation of the suggested Islamic model and the derivation of the necessary optimal conditions with application to the class of Cobb-Douglas utility functions.
(View the image of this page) In the case that the entrepreneur cares only about maximizing profit, he or she will produce at the level QM with a corresponding society’s welfare loss equal to W0, where W0 has been defined in the first section.