Discuss the Extent to Which Firms in the Leisure Industry Always Seek to Maximise Profits.

Discuss the extent to which devoteds in the empty industry perpetually search to maximise makes. Profit maximation is achieving the extravagantlyest possible shekels where marginal costs are commensurate to marginal gross enhancement. This is what approximately firms in the blank industry will seek to do, such(prenominal) as cinemas, as the business master(prenominal) intent is to create spicy levels of profit. Profit maximisation can be seen on the be at point MC=MR (the two curves cross). This is the point where participation are maximised. However, it is not always the case that a firms main documentary is maximising profit. Some firms main priority may be to maximise growth. Growth maximisation is where the firms main object is to increase the size of the firm as much(prenominal) as possible. In the leisure mart, this may apply to businesses such as Clinton tease. Clinton Cards has recently gone into administration due to go gross sales c aused by increasing online competition. It is likely that growth maximisation is its main objective at the moment in a iron out to increase its already diminishing market percent in an attempt to survive. Some other firms in the leisure market, such as , will capture the objective of revenue maximisation. This is when the objective of the firm is achieving as high a fall revenue as possible and occurs when marginal revenue is equal to zero, as shown on the graph. Another objective of a firm may be profit satisficing, where a firm makes a fairish level of profit that satisfies its stakeholders without maximising profit. Examples of this in the leisure market may include businesses that have only in force(p) delimit up, as they perhaps do not have the bunk force to maximise profits yet and sort of return for a satisfying level of profit. The final objective of a business may be utility maximisation. inferior maximisation is the aim of trying to achieve as much m erriment as possible. This may include footb! all society owners in low divisions, as although they are likely to exhaust rapture from being...If you want to get a full essay, invest it on our website: OrderCustomPaper.com

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