Alternative Business Objectives
Critique of the Maximizing Behaviour of Consumers and Producers
AO3·HL
Syllabus requirement
Includes objectives like increasing market share, corporate social responsibility, growth, and satisficing behavior.
Assessment objectives
AO3 Synthesis and Evaluation
Higher LevelThis topic is assessed at HL.
Summary
This topic examines alternative business objectives with a focus on profit and profit maximization. It explains why profit is commonly treated as the primary objective for private sector firms, how profit maximization is defined in terms of total revenue and total costs, and the common strategies firms use to increase profit. The material matters because assessing firm behaviour requires understanding both the profit motive and limits to that assumption.