5. List out the major objectives of the firm.

Question

Question

Answer 1

Answer #1

The first and most important objective of the firm is the profit maximization. The higher profits enables the firm firm to fund more to the research and development. The higher profits also lead to the increase in the salaries for the employees so there is increase in the welfare of the workers.
The second object would be sales maximization, it allows them to increase their market share. Higher the sales maximization the lower the profit will be in the short run but in the long run the firm can surely enjoy higher profits. The increased sales gives some kind of monopoly power in the market and this would help them to force the rival out of the business.
The next one is the growth maximization, this one also allows them to increase the market share. The firm has to sacrifice the profit to increase their size.
Welfare maximization is another objective for the firm , there is personal welfare as well as the social welfare. The firms do care about these two,the social welfare is affected by the decisions of the people their likes and dislikes.
Utility maximization.

Answer 2

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