Topic 7 by https://padlet.com/vyonceloh/asse2dxmpa4981fn objectives of firm n survival of small Firms en-us 2022-03-03 07:33:45 UTC 2025-11-11 04:00:43 UTC hello@padlet.com Objectives of firm vyonceloh https://padlet.com/vyonceloh/asse2dxmpa4981fn/wish/2075287536 2022-03-03 07:35:58 UTC https://padlet.com/vyonceloh/asse2dxmpa4981fn/wish/2075287536 Profit Maximization vyonceloh https://padlet.com/vyonceloh/asse2dxmpa4981fn/wish/2075347109 the classical model of economics assumes firms want to maximize profits. producing at MR=MC 
- it can be used to finance expansion of its scale of production. eg; ploughing back its profit into increasing its production capacity, by using its profit to takeover other firms.
- to engage in non-price competition, such as product development and product promotion ]]> 2022-03-03 08:18:30 UTC https://padlet.com/vyonceloh/asse2dxmpa4981fn/wish/2075347109 Revenue Maximization vyonceloh https://padlet.com/vyonceloh/asse2dxmpa4981fn/wish/2077547536 Revenues are maximised at an output where MR=0
-customers value companies with increasing sales.
-financial institution may be more willing to lend to a company with increasing sales.]]> 2022-03-04 08:27:13 UTC https://padlet.com/vyonceloh/asse2dxmpa4981fn/wish/2077547536 Growth Maximization vyonceloh https://padlet.com/vyonceloh/asse2dxmpa4981fn/wish/2077552138 This is where output is at the highest where AR=AC
- large firms are less likely to takeover]]> 2022-03-04 08:31:30 UTC https://padlet.com/vyonceloh/asse2dxmpa4981fn/wish/2077552138 Satisficing vyonceloh https://padlet.com/vyonceloh/asse2dxmpa4981fn/wish/2077557901 -This is where firms involves or deal with many interest groups all with their own objectives
-The company reaches a satisfactory level but does not maximize anything

]]> 2022-03-04 08:36:44 UTC https://padlet.com/vyonceloh/asse2dxmpa4981fn/wish/2077557901 Survival of Small Firms vyonceloh https://padlet.com/vyonceloh/asse2dxmpa4981fn/wish/2077611591 2022-03-04 09:22:17 UTC https://padlet.com/vyonceloh/asse2dxmpa4981fn/wish/2077611591 Personalized Service vyonceloh https://padlet.com/vyonceloh/asse2dxmpa4981fn/wish/2077618047 this limits the cost advantage of large firms over small firms which enables small firms to survive]]> 2022-03-04 09:27:43 UTC https://padlet.com/vyonceloh/asse2dxmpa4981fn/wish/2077618047 Market Share Maximization vyonceloh https://padlet.com/vyonceloh/asse2dxmpa4981fn/wish/2077650876 the firm seek to maximise market share. (produce output level where P=AC)
- ensure the survival of new entrant]]> 2022-03-04 09:55:14 UTC https://padlet.com/vyonceloh/asse2dxmpa4981fn/wish/2077650876 Niche Market vyonceloh https://padlet.com/vyonceloh/asse2dxmpa4981fn/wish/2077660955 -there is limited benefit of economies of scale due to the small sizes of the markets which enables small firms to survive
-eg; small firms that sells plus size clothing to obese women]]> 2022-03-04 10:03:48 UTC https://padlet.com/vyonceloh/asse2dxmpa4981fn/wish/2077660955 Supporting Role vyonceloh https://padlet.com/vyonceloh/asse2dxmpa4981fn/wish/2077663162 Act as a supporting role to large firms
- do not face competition with large firms which enables them to survive]]> 2022-03-04 10:05:55 UTC https://padlet.com/vyonceloh/asse2dxmpa4981fn/wish/2077663162 Convenience vyonceloh https://padlet.com/vyonceloh/asse2dxmpa4981fn/wish/2077669016 Small firms that cater for consumers in particular area are able to survive.
- eg; small retail stores located in the neighbourhoods that cater for residents
- these small retail store have more appeal than large supermarkets which enables them to survive.]]> 2022-03-04 10:11:25 UTC https://padlet.com/vyonceloh/asse2dxmpa4981fn/wish/2077669016