SSC
GENERAL ECONOMICS
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
Which group has profit maximisation as a goal?
|
|
entrepreneurs
|
|
|
governments
|
|
|
savers
|
|
|
workers
|
Explanation:
Detailed explanation-1: -Profit maximisation is the only objective of financial managemant. OR Maximisation of profit is real and complete motive.
Detailed explanation-2: -Advantages of profit maximisation A business that ensures the marginal cost never exceeds the marginal revenue is primed to generate positive cash flows. This in turn creates value for shareholders and presents an attractive proposition for investors.
Detailed explanation-3: -The firm will maximize its profit when the price or marginal revenue is equal to the marginal cost.
There is 1 question to complete.