3.2.1 Business objectives- Flashcards
1
Q
Different business objectives
A
- profit maximisation
- revenue maximisation
- sales maximisation
- satisficing
2
Q
Profit maximisation
A
When MC = MR:
The level of output at which the greatest amount of profit is made
3
Q
How can firms make more profit?
A
- increasing D(AR)
- decreasing AC
4
Q
Revenue maximisation
A
When MR = 0:
If a firm is aiming to increase