Sales maximisation
Definition. Sales maximisation is a firm objective of selling the largest quantity of output possible while still at least breaking even, that is without making a loss. It occurs where total revenue equals total cost, or equivalently where average revenue equals average cost, giving zero economic profit.
Firms may pursue this to gain market share, deter rivals, or because managers value scale. The output sold exceeds the profit maximising quantity, so price is lower than under profit maximisation.
This term belongs to The Objectives of Firms in A Level Economics. Read the full chapter for the diagrams, worked examples and exam technique.
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