7.8 Differing objectives and policies of firms Flashcards
1
Q
Limit pricing
A
where firms deliberately lower prices and abandon a policy of profit maximisation to stop new firms entering a market
2
Q
Price leadership
A
a situation in a market where by a particular firm has the power to change prices, the result of which is that competitors follow this lead
3
Q
Sales revenue maximisation
A
a firm’s objective to maximise turnover
4
Q
Sales maximisation
A
a firm’s objective to maximise the volume of sales
5
Q
Satisficing
A
a firm’s objective to make a reasonable level of profit
