🎯 Why Firms Aim to Maximise Profit
Firms aim to maximise profit because profit rewards owners, attracts investment, and allows expansion and survival.
- Profit funds future growth
- Profit signals efficiency
- Losses force firms to exit
IB Economics • Unit 2
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Firms aim to maximise profit because profit rewards owners, attracts investment, and allows expansion and survival.
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Give the precise meaning of key terms related to Profit maximisation logic.
AO1Give a detailed account of processes or features in Profit maximisation logic.
AO2Give reasons WHY — cause and effect within Profit maximisation logic.
AO3Weigh strengths AND limitations of approaches in Profit maximisation logic.
AO3Present arguments FOR and AGAINST with a balanced conclusion.
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