economic objectives and rationality

formula for profit
total revenue minus total costs
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3 reasons for firms wanting to maximise profits
1- firm can survive 2- offer better rewards to the owner and staff 3- reinvested, expand
2 of 8
why would a firm want to maximise total sales or market share (2)
1- market share=monopoly power 2- considered more prestigious and stable
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example of ethical objective for a firm
support the local economy
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what do consumers maximise
utility
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what do workers maximise
income and free time
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what do governments maximise? how?
public interest. balance resources with needs and wants
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how do governments maximise (4)
1- economic growth 2-full employment 3-equilibrium in the balance of payments 4-low inflation
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Other cards in this set

Card 2

Front

3 reasons for firms wanting to maximise profits

Back

1- firm can survive 2- offer better rewards to the owner and staff 3- reinvested, expand

Card 3

Front

why would a firm want to maximise total sales or market share (2)

Back

Preview of the front of card 3

Card 4

Front

example of ethical objective for a firm

Back

Preview of the front of card 4

Card 5

Front

what do consumers maximise

Back

Preview of the front of card 5
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