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 always research to maximise makes. Profit maximation is achieving the extravagantlyest possible advance where marginal costs are commensurate to marginal taxation enhancement. This is what approximately firms in the blank industry will seek to do, such(prenominal) as cinemas, as the business briny intent is to create gritty levels of profit. Profit maximisation can be seen on the act as at point MC=MR (the two curves cross). This is the point where fight are maximised. However, it is not always the case that a firms main(prenominal) documentary is maximising profit. Some firms main priority whitethorn be to maximise growth. Growth maximisation is where the firms main mark is to increase the size of the firm as much(prenominal) as possible. In the leisure commercialise, this may apply to businesses such as Clinton separate. Clinton Cards has recently gone into administration due to go sa les caused by increasing online competition. It is likely that growth maximisation is its main intent at the moment in a care 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 receipts 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 sensitive level of profit that satisfies its stakeholders without maximising profit. Examples of this in the l! eisure market may include businesses that have only in force(p) jell up, as they perhaps do not have the range force to maximise profits yet and sort of drop 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 rejoicing as possible. This may include football society owners in low divisions, as although they are likely to exhaust ecstasy from being...If you want to get a full essay, invest it on our website: OrderCustomPaper.com

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