Firms Can Have Different Objectives
Firms Can Have Different Objectives
A business objective is the aim that guides a firm's decisions about price, output and resource use. Although firms are traditionally assumed to maximise profit, businesses may pursue three main maximising objectives: profit maximisation, revenue maximisation and sales maximisation. Satisficing is a fourth objective, where managers aim for a satisfactory level of profit rather than the maximum possible profit.
Step-by-step lessons covering Edexcel A A Level Economics 3.2.1 Business objectives for A Level Economics. Each lesson works through exam-style questions in Paper 1, Paper 2 and Paper 3 format. Start with the core supply-and-demand models before moving on to the more evaluation-heavy macroeconomic policy topics.