Identify the objective implied by a firm's circumstances, then calculate profit as total revenue minus total cost and locate the output where that difference is greatest.
Canada's private sector firms have a number of different objectives. The quantity and quality of land used by these firms, including farms, has increased. There has also been increased investment with the firms buying more capital goods. In 2021, the Canadian government encouraged higher investment and aimed to prevent a rise in unemployment.
Identify two objectives of private sector firms.
Identify two objectives of private sector firms.
Two from:
- profit (maximisation)
- growth / high sales
- greater market share / market dominance
- survival
- improving the environment
2
Reward but do not expect profit satisficing, revenue maximisation, sales maximisation.
Allow social welfare.
If more than two objectives given, consider the first three.