In theory, it is assumed there is no significant effect of their separation and profit maximization remains the functional objective of the firm. In theory, geographic diversification is not formally considered except as additions to factor cost. Similarly multiple outputs not formally considered. Cost the value of factors of production in producing output and serves, along with price and quantity of output, as key factor in economic decision-making. Profit Maximization the rational entrepreneur tries to maximize profits.
Profit maximization insures survival of the firm.