1.2 Enterprise, Business And The Economy Flashcards
1
Q
Profit maximisation formula
A
Marginal revenue = marginal cost
2
Q
Sales maximisation formula
A
Average costs = average revenue
3
Q
Satisficing
A
Achieving the minimally acceptable result rather than optimal solution e.g enough to keep shareholders happy
4
Q
Survival
A
Keep positive cash flow for expenses to ensure survival
5
Q
Market share
A
Grow to promote business to more customers - increase sales, increase profits
6
Q
Cost efficiency
A
Helps bring cost down, lower costs, higher profits
