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Revision:Sales and Revenue Maximisation

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TSR 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 maximisation

Sales 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 maximisation

The 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.

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