Why Do Firms Want To Revenue Maximise? Classical economic theory suggests firms will seek to maximise profits. The benefits of maximising profit include: Profit can be used to pay higher wages to owners and workers. … Profit enables the firm to build up savings, which could help the firm survive an economic downturn. What do
Why Do Firms Sales Maximise? Firms often seek to increase their market share – even if it means less profit. This could occur for various reasons: Increased market share increases monopoly power and may enable the firm to put up prices and make more profit in the long run. Why do sales maximize? Sales maximisation
What Is The Difference Between Profit Maximization And Revenue Maximization? To make it simple, Revenue Maximization is a point at which a business keeps selling till marginal revenue does not fall negative and profit maximization is a point at which business sells to point at which its marginal cost does not increase its marginal revenue.