3.2 Business Objectives Flashcards
1
Q
At what point is profit maximisation achieved?
A
Where MR = MC
2
Q
Why do firms profit maximise?
A
To gain from profit benefits
3
Q
At what point is revenue maximisation achieved?
A
Where MR = 0
4
Q
Why does firms revenue maximise?
A
In order to benefit from increased output and therefore better EoS
5
Q
When is sales maximisation achieved?
A
Where AC =AR
6
Q
What is profit satisficing?
A
Opting for a satisfactory level of profit rather than profit maximisation
