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Sometimes the managers of the firm may be more interested in their own gain, for example if the firm will maximise profits at 1000 units, anything produced after that has a higher Marginal cost than it does Marginal Revenue, profit wil start to decline. however managers may still aim to sell more than the 1000 if they are receiving a bonus for the amount of sales, they may choose to maximise sales rather than profits
What else can I help you with?
What is sales maximization model?
Term sales maximization Definition: The notion that business firms (especially those operating in the real world) are primarily motivated by the desire to achieve the greatest possible level of sales, rather than profit maximization. On a day-to-day basis, most real world firms probably do try to maximize sales rather than profit. For firms operating in relatively competitive markets, facing relative fixed prices, and relatively constant average cost, then increasing sales is bound to increase profits, too. Moreover, according to the notion of natural selection, even firms that seek to maximize sales, those that also maximize profit will remain in business.
Why do producers try to minimize costs and maximize revenue?
The profit motive
What identifies the reason why producers try to minimize costs and maximize revenue?
The profit Motive
Why do firms try to aviod competition?
They can set higher prices to earn a better profit.
Which of the following identifies the reason why producers try to minimize costs an maximize revenue?
the profit motive
What is sales maximization model?
Term sales maximization Definition: The notion that business firms (especially those operating in the real world) are primarily motivated by the desire to achieve the greatest possible level of sales, rather than profit maximization. On a day-to-day basis, most real world firms probably do try to maximize sales rather than profit. For firms operating in relatively competitive markets, facing relative fixed prices, and relatively constant average cost, then increasing sales is bound to increase profits, too. Moreover, according to the notion of natural selection, even firms that seek to maximize sales, those that also maximize profit will remain in business.
Why do producers try to minimize costs and maximize revenue?
The profit motive
What identifies the reason why producers try to minimize costs and maximize revenue?
The profit Motive
Which identifies the reason why producers try to minimize costs and maximize revenue?
The profit motive.
Why do firms try to aviod competition?
They can set higher prices to earn a better profit.
Why do firms try to sell more products or try to sell them at a higher price?
so they can have a bigger profit margin
Which of the following identifies the reason why producers try to minimize costs an maximize revenue?
the profit motive
Why do firms try to sell more products or to sell them at a higher price?
so they can have a bigger profit margin
Why do firms try to sell more products or to sell them at higher price?
so they can have a bigger profit margin
What is the difference between earnings and profit?
Earnings include expenses, while profits are less expenses. Businesses try to maximize profits by reducing expenses, which is why some businesses charge more for the similar products.
Where should one take Nintendo DS games for a reasonable profit?
Before trying to sell them to any actual stores, try selling them online. That way, you get to set the price. Many electronics stores will try to give you the lowest price possible in order to maximize their profits.
Calculate net income?
revenue - cost of goods = gross profit gross profit - operating costs - other expenses = net income Basically net income is what you have after making every possible deduction. It is the actual money the company or individual takes home. This can become quickly complicated as we start to include interest gains, dividends received and other returns and is specific to the business type.
