Neo-classical economics says that interests of owners are most importnant
To generate funds for investment and growth
To give more security in case of economic downturn
2 of 7
Where does revenue maximisation occur?
MR = 0
3 of 7
What are the arguments for revenue maximisation?
Agents are interested in maximising revenue as salary depends on revenue
Increases a firm's prestige
4 of 7
Where does sales maximisation occur?
AC = AR
5 of 7
What are the arguments for sales maximisation?
Increased market share
Output increases, so firm is organically growing
6 of 7
What is profit satisficing?
Earning enough profit to keep owners happy while following other objectives
7 of 7
Other cards in this set
Card 2
Front
What are the arguments for profit maximisation?
Back
Neo-classical economics says that interests of owners are most importnant
To generate funds for investment and growth
To give more security in case of economic downturn
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