Rationality in Production: The Case of The Muslim Firm Available to Purchase

In an Islamic environment, the behavior of the Muslim firm is different from that of the non‐Muslim. The Muslim firm ultimate objective is not only to maximize profit but also to enrich his love of hereafter and for achieving (falah) or success by sacrificing part of his profit for the benefit of the Muslim society (according to the degree of faith he possesses). This study aims to answer the following question: How does care for the good of the society influence the Muslim firm decisions? The answer to that question has been answered by formulating an objective function of the Muslim firm and deriving the optimally necessary conditions for maximization.