3.2 Business Objectives Flashcards

1
Q

At what point is profit maximisation achieved?

A

Where MR = MC

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2
Q

Why do firms profit maximise?

A

To gain from profit benefits

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3
Q

At what point is revenue maximisation achieved?

A

Where MR = 0

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4
Q

Why does firms revenue maximise?

A

In order to benefit from increased output and therefore better EoS

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5
Q

When is sales maximisation achieved?

A

Where AC =AR

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6
Q

What is profit satisficing?

A

Opting for a satisfactory level of profit rather than profit maximisation

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