468479
Description
Mind Map by usman ahmed, updated more than 1 year ago
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Created by usman ahmed
over 10 years ago
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Chapter 2 - The objectives of firms
- Normal profit-minimum cost needed to remain in the industry
- Supernormal profit is anything above normal profit
- Supernormal profit is anything above normal profit
- Divorce of ownership from control - Any firm in which there are
shareholders and managers
- Sales maximisation - P=MC
- Profit satisficing -
making enough profit
- Is a form of X efficiency
- Is a form of X efficiency
- Profit maximisation - produce where MC
= MR
- cost plus pricing
- Managerial theory
- Organisational theory - relative power
- Sales maximisation - P=MC
- Social objectives
- Ethical supply chain
- Environment
- British goods only
- Ethical supply chain
- PLC-LTD
- Short term loss for
long term profit
- Growth
- internal or Organic
- External
- Vertical integration
forward/backward
- Horizontal
- Conglomerate
- Lateral
- Vertical integration
forward/backward
- internal or Organic
- Technological change
- Lower MES
- Better quality
- LRAC lowered
- Lower MES
- Revenue maximisation, where MR=0
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