1.1 scarcity choice and potential conflicts Flashcards
scarcity
when consumers have unlimited wants and needs but there is a finite amount of resources
trade off
situation where having more of one thing leads to less of another
opportunity cost
value forgone by not choosing the next best alternative
profit maximisation
firm determines price and output level that returns greatest profit
sales maximisation
firm sells as much as possible without making a loss
satisficing
firm does not seek maximum profit or sales but wants to achieve a good enough level of profit to survive (lifestyle business)
business objectives
- survival
- market share
- cost efficiency
- return on investment
- employee welfare
- customer satisfaction
- social objectives
stakeholders
anyone w a direct interest in the actions and performance of an organisation
economic agents
people and organisations who are involved in economic activity
types of stakeholders
- employees
- manager
- owners
- suppliers
- community
- government
- creditors
- shareholders
- customers
CSR (corporate social responsibility)
business that considers interests of society by taking responsibility for impact of their decisions
