Study Notes
Business Objectives: Maximisers and Satisficers
- Level:
- A-Level
- Board:
- AQA, Edexcel, OCR, IB
Last updated 21 Mar 2021
Maximisers behave in a traditional economic way and always try to make the best possible choice from the available alternatives.
Satisficers examine only a limited set of alternatives, and choose the best between them
Many businesses who adopt satisficing use rules of thumb rather than complex pricing policies.
Instead of seeking the optimum profit-maximising price and output, they rely on simple-cost plus approaches e.g. they charge the unit cost of supply + 10%
Satisficers may be the managers of a business who are more concerned with increasing revenue and/or market share rather than pure profit maximisation.
Maximising Total Revenue
![](https://tutor2u-net.imgix.net/subjects/economics/max_total_revenue.png?auto=compress%2Cformat&fit=clip&q=80&w=800)
Sales maximisation subject to making at least normal profit
![](https://tutor2u-net.imgix.net/subjects/economics/sales_max_objectives.png?auto=compress%2Cformat&fit=clip&q=80&w=800)
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