Economics (AS & A Level) · Oct / Nov 2024 · Paper 31 · Question 6
9708Differing objectives and policies of firms
LMN Ltd operates as a relatively small, family-owned producer in an industry dominated by a few large firms. Its product is unique so the owners are confident they will be able to sell enough to provide them with sufficient revenue to allow a minimum acceptable level of performance for the firm. Other than survival, what is the most likely objective of LMN Ltd?
- Aprofit maximising
- Bprofit satisficing
- Crevenue maximising
- Dsales maximising
As printed in the paper
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Correct answer: B. profit satisficing
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