1
Q
Why profit max
A
- Reinvestment
- Dividends
- Lowers costs and prices
2
Q
Why not profit max
A
- Scrutiny from CMA
- Lack of knowledge of MC=MR
3
Q
Why rev max
A
- Eco of scale
- Pred pricing
- Principal agent problem- it’s easier
4
Q
Why sales max
A
- Eco of scale
- Limit pricing
- Principal agent problem
5
Q
Other objectives
A
- Profit satisficing
- P=MC
- Cooperate social responsibility
Economics Theme 3 revised
flashcards
Decks in class (17)
# Cards
-
1- Business growth definitions6
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1- Business growth14
-
1- Business growth evaluation0
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2- Business objectives definitions6
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2- Business objectives6
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2- Business objectives evaluation0
-
3- Economies and diseconomies of scale definitions6
-
3- Economies and diseconomies of scale17
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3- Economies and diseconomies of scale evaluation0
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Labour markets- wage diffrentials7
-
Privatisation Vs Nationalisation6
-
Government Intervention29
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Oligopoly6
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Monopoly3
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Elasticities of labour4
-
Contestability11
-
Business objectives5
