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Economics

Study Notes

Business Objectives: Maximisers and Satisficers

Level:
A Level
Board:
AQA, Edexcel, OCR, IB

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

Sales maximisation subject to making at least normal profit

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