3.2 Business objectives

Question 1

Profit Maximisation

Answer 1

Goal of a firm to make the highest profits possible. MC=MR.

Question 2

Revenue Maximisation

Answer 2

Goal of a firm to get the highest possible amount of money in. MR=0.

Question 3

Sales Maximisation

Answer 3

Goal of a firm to sell as many units as possible. AC=AR.

Question 4

Satisficing

Answer 4

Goal of a firm to balance a range of different objectives.