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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.
Who recommended that American firms adopt a new management style that was a hybrid of the approaches used by Japanese firms and those used by American firms?
William Ouchi
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
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 small and medium accounting firms?
accounting firms carry out superior audits than small accounting firms
Why big accounting firms carry out superior audits than medium and small accounting firms?
accounting firms carry out superior audits than small accounting firms
What are the Jonas brothers AIMs?
The Jonas Brothers do not have AIMS.
What are the aims and objectives of waitrose?
what are the aims and objectives of waitrose?
Aims and objectives of vodafone group?
Objectives and aims
What are the aims of legislation?
what is the key aims of ohs legislation
Why have aims and objectives?
Without Aims and Objectives how do you know where your business is heading for the future. You need it achieve your aims of the business.
What is the difference between an aim and objective?
Aims are broader and wider.with the help of objectives we achieves our aims and objectives are framed if we have aim. objectives are not wide as aims it frames according to aims.
