Business Objectives In Economics

For example making a profit is a business objective.

Business objectives in economics. However in the real world there are many other objectives that a firm can pursue. The main objective of any business is to earn a profit. The most basic model of a firm assumes firms wish to maximise their profit.

Profit is the extra income over the expenses. Expenses are what the business spends. Breaking into a new market sector and making sufficient profit in the long run.

Business objectives in economics online lesson in this online lesson we cover the basics of the different business objectives including profit maximisation revenue maximisation sales volume maximisation and a range of efficiencies. By promoting corporate social responsibility providing a public service or achieving other social aims. These objectives also help keep students focused on the big picture of what the study of economics is all about.

Microeconomics demonstrate an understanding of the concepts of scarcity and opportunity. Your objectives on the other hand describe how you plan to get there. Economic theory suggest that a price can be identified which achieves this goal.

Conventionally it is assumed that profit maximization is the sole objective of business firms. Business is a set of activities undertaken with the prospect of sale for the purpose of earning a profit. Economic objectives of business refer to the objective of earning profit and also other objectives that are necessary to be pursued to achieve the profit objective which include creation of customers regular innovations and best possible use of available resources.

Just as a plant cannot survive without water similarly a business cannot sustain without profit. Learning objectives for economics majors the department of economics has a separate set of learning objectives in addition to the school s assurance of learning objectives. Economic theory often assumes that firms are rational profit maximisers.