😁memes🤣Differing Objectives and Policies of Firms— A levels Economics CIE 9708

profit maximisation

sales revenue maxamisation

Why firms maximize revenue instead of profits #alevel #revision #cambridge

sales maximization

AC=AR

Sales maximisation involves supplying the largest output possible consistent with earning at least normal profits where average revenue = average cost (AR=AC).

Price discrimination

First degree: Firm charging each consumer a different price. For example, a clothes seller selling the same clothes at different prices to different people who walk into the shop.

Second degree: Customers who buy more are charged less.

Third degree: When a firm actively discriminates between consumers based on the assumption that groups of consumers will have a different price elasticity of demand for the product. An example are discounts offered to students at movie theaters compared to other adults.