Most business managers tend to think that profit maximization is the ultimate goal of a business. Currently, however, when the theory of profit maximization is advocated, the concept of the term “revenue” has expanded to take into account the accounting concerns encountered when profits are made by the company and also the time value of money. The time value of money means that what is worth a dollar today will be worth less in the future. Considering profit maximization as a whole, the purpose of short-term profit maximization will be exchanged for long-term profit maximization. Explaining what is meant by “present value of expected profits” first requires understanding its meaning. of the term “value” and therefore understand the definition of “present value”. There are various types of expressions when talking about value, for example: book value, market value, going concern value, disposal value and liquidation value. These are all forms of value that are discussed in business and economics. The “value” of a business is stated in terms of net cash flow. This is the present value of expected future earnings. Therefore, to obtain this information, you need to find the trend of the company's net cash flow over the next few years. Once you have identified this, you will need to convert expected future profit values ​​into present value. This can be done by reducing the value of an appropriate interest rate. It should be noted that the expected profit in any period can be considered as the difference between the total revenue and the total cost in that period. Therefore, one can, alternatively, find the present value of expected future profits by subtracting the present value of expected future costs from... middle of paper... The main difference between oligopolies and other types of oligopoly markets is that oligopolies depend from other sellers in the sector. This means that if a seller makes a significant change, be it in price or production, it will have an effect on other competitors in the market. Therefore, most oligopolies consider how their decisions might affect competition. Unlike the previous two markets, there are barriers when new businesses try to enter the market. These barriers could be anything from financial need to technology. Oligopolies are usually characterized by economies of scale. When economies of scale are defined, this means that as production increases, the cost of production decreases. Therefore, economies of scale can cause smaller producers to be at a disadvantage compared to larger producers.