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Revision:Sales and Revenue Maximisation
From The Student RoomTSR Wiki > Study Help > Subjects and Revision > Revision Notes > Economics > Sales and Revenue Maximisation Firms do not always aim to maximise profit. Managers may instead choose to focus on sales maximisation or revenue maximisation. Sales maximisationSales are pushed up to the point where the firm just breaks even, where TR = TC. The output is set higher than under profit maximisation.
Revenue maximisationThe point when MR = 0 and the firm is producing at the point where TR is maximised. The profits will not be maximised. Output will be larger than under profit maximisation. Comments |
















