Sales maximisation
Sales maximisation is equivalent to revenue maximisation, where the firm pursues maximum sales quantity and revenue (MR = 0) rather than maximum profit. This objective reflects managerial goals to grow the firm and increase personal status through controlling larger operations.
Real World
Uber's early strategy of subsidising rides to maximise the number of trips taken reflected managers' desire to dominate market share, even at the cost of billions in annual losses.
Exam Focus
Explain the principal-agent problem when discussing sales maximisation — marks depend on linking managerial incentives to output decisions.
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