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A-Level What Firms Aim For

What the A-Level syllabus expects for What Firms Aim For, and how to practise it.

What the syllabus expects

• Firms seek to maximise profit, which is the gap between total revenue and total cost; the profit-maximising output is reached where marginal revenue (MR) equals marginal cost (MC) with MC rising.
  Scope: Firms may hold too little or inaccurate information to set the price and output that would maximise profit.
• Alternatively, firms may pursue other aims such as revenue maximisation, profit satisficing and dominance of market share.

More A-Level H2 Economics topics

Scarcity, Choice and How Resources Get Allocated · How Economic Agents Reach Decisions · The Price Mechanism and What It Does · Applying Demand and Supply Analysis · Government Intervention in Markets · Cost and Revenue for Firms · all of A-Level H2 Economics