1
Q
What is profit maximisation
A
MC=MR
2
Q
What is revenue maximisation
A
MR=0
3
Q
What is sales maximsation
A
AR=AC
4
Q
What is profit satisficing
A
when firms make enough profit to keep stakeholders happy but can also focus on other objectives
5
Q
why might firms profit maximise
A
pay dividends
reinvest back into the business
6
Q
why might firms revenue maximise
A
increase market share
prestige
managerial benefits
7
Q
why might firms sales maximise
A
increase market share
prevent others entering market
8
Q
why might firms profit satisfice
A
to keep shareholder happy
focus on other objectives
Micro Year 2
flashcards
Decks in class (11)
# Cards
-
Labour Market19
-
Sizes and Types of Firms6
-
Costs and Revenues50
-
Economies and Diseconomies of Scale9
-
Business Objectives8
-
Business Growth and Demergers20
-
Efficiency and Shut Down Points17
-
Perfect Competition, Monopoly and Monopolistic Competition13
-
Oligopoly20
-
Government Intervention in Business23
-
Contestability4
