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1) Profit maximisation.
The standard assumption made by economist is that firm will seek to maximise their profit that is maximise the gap between the firm's total revenue and total cost (including normal profit.) A firm making the minimum level of normal profit is said to be producing the break even output. Firms will want to make abnormal profit as a reward for managing the resources and taking business risks.
2) Sales revenue maximisation A firm may be prepared to accept a lower price and produce above the profit maximising output in order to increase its market share in a growing market. This is a penetration pricing policy.
A firm choose to maximise its sales revenue would raise output beyond MC=MR until MR had fallen to zero. Extra sales after this would contribute nothing to total revenue, therefore it is at maximum.
What else can I help you with?
Are profitable firms necessarily efficient firms?
yes
Why do small firms continue to exist despite the issue of competition?
why do small firms continue to exist despite competition from large firms
Do firms operate at optimal scale?
do firms operate at optimal scale
How many firms in India manufacture soaps and toothpaste aims and objective?
India has a vast number of firms manufacturing soaps and toothpaste, ranging from large multinational corporations to numerous small and medium enterprises. The primary aim of these firms is to cater to the diverse consumer needs for personal hygiene products while maintaining quality and affordability. Additionally, many companies focus on sustainability and innovation in their products to capture a larger market share and address environmental concerns. The objective is to enhance brand loyalty and expand their presence in both domestic and international markets.
Is not a method that the government uses to intervene and prevent firms from controlling the price and supply of important goods?
One method the government uses to prevent firms from controlling prices and supply is antitrust regulation. These laws are designed to promote competition and prevent monopolistic practices that could harm consumers. By regulating mergers, acquisitions, and certain business practices, the government aims to ensure a fair market and protect the interests of both consumers and smaller businesses.
What are the aims of the government on deregulation?
to create greater competiton in marketreduce government subsidiesreduce costs to consumersmore firms join the market
Who should use a concentrated marketing strategy?
The concentrated strategy, which aims to serve a large share of one or a very few markets, is best suited for firms with limited resources
What is Clios job?
Clio is a cloud-based practice management software designed for law firms. It helps lawyers and legal professionals manage their cases, track time, bill clients, and streamline document management and communication. By centralizing various aspects of legal practice, Clio aims to improve efficiency and organization within law firms.
How many firms are traded on the FTSE?
There are approximately 1700 firms traded on the FTSE. The number of firms traded changes daily. New firms are added as some firms drop off the exchange.
Are profitable firms necessarily efficient firms?
yes
Why big accounting firms carry out superior audits than medium and small accounting firms?
accounting firms carry out superior audits than small accounting firms
Why big accounting firms carry out superior audits than small and medium accounting firms?
accounting firms carry out superior audits than small accounting firms
What are the Appliance repair firms tax consultants law firms and insurance companies are all business firms that are part of the?
Service Sector
Why do small firms continue to exist despite the issue of competition?
why do small firms continue to exist despite competition from large firms
Do firms operate at optimal scale?
do firms operate at optimal scale
What is Auditing practices and methodology of firms?
What is Auditing practices and methodology of firms?"
What are accountants job when inflation hits firms?
To sacrifice to the Firms Gods.
