Objectives Of Firms

Question 0

Often it is assumed that

Answer 0

Private sector firms all seek to maximise profits however it can be very difficult to calculate where MC=MR
So they use more simplistic ways of pricing

Question 1

The objectives of firms are highly dependent on…

Answer 1

The type of firm it is and the priorities of managers

Question 2

Sales revenue maximisation may often…

Answer 2

Be linked to managers salaries rather than profit performance

Question 3

More sales revenue means..

Answer 3

Firms will attract more investment and can take full advantage of economies of scale

Question 4

Sales revenue maximisation is achieved when…

Answer 4

MR=0

Question 5

Growth maximisation…

Answer 5

Managers may wish to increase size of firm, employing more workers will raise the status of the firm. Which in the long run could be matched with an increase in profits

Question 6

Public sector firms may choose to aim to-

Answer 6

• promoting education
• employment
• consumer satisfaction