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 everlastingly anticipate to maximise makes. Profit maximation is achieving the extravagantlyest possible clear where marginal costs are commensurate to marginal receipts enhancement. This is what approximately firms in the blank industry will seek to do, such(prenominal) as cinemas, as the business chief(prenominal) intent is to create laid-back levels of profit. Profit maximisation can be seen on the present at point MC=MR (the two curves cross). This is the point where engage 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 documental is to increase the size of the firm as much(prenominal) as possible. In the leisure merchandise, this may apply to businesses such as Clinton separate. Clinton Cards has recently gone into administration due to go sales caused by increasing online competition. It is likely that growth maximisation is its main mark at the moment in a arouse 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 clean level of profit that satisfies its stakeholders w ithout maximising profit. Examples of this i! n the leisure market may include businesses that have only in force(p) toughened up, as they perhaps do not have the pop off force to maximise profits yet and sort of go under 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 bliss as possible. This may include football society owners in low divisions, as although they are likely to exhaust atonement from being...If you want to get a full essay, invest it on our website: OrderCustomPaper.com

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