Profit Maximisation
Business objective making highest possible profit.
Formula
Profit = Total Revenue − Total Costs (maximised where MC = MR)
Real World
Sports Direct (now Frasers Group) historically pursued profit maximisation through ultra-tight cost control, including controversial zero-hours contracts, enabling it to undercut rivals on price while maintaining margins.
Exam Focus
Always challenge profit maximisation as the sole objective — high-mark answers consider conflicts with other goals such as CSR or long-run growth.
How well did you know this?