- Post economic questions and comments about key topics during the course
- You could also suggest improvements or additions to the website!
- When you find a useful article, website or resource, share it by posting a Blog here! - Post economic questions and comments about key topics during the course - You could also suggest improvements or additions to the website!
7 Comments
The A2 lads
14/6/2015 02:00:01 am
I have questioned the other economic boys in the class, asking about your homework, as somehow I failed to note down an accurate description of the task in hand. Please get back to me asap using the email I provided earlier.
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Mr Tarn
14/6/2015 02:34:25 am
Using Weebly produce a blog entry which summarises the issues on the Tutor2U article I gave you in the lesson.
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Mr Tarn
14/6/2015 04:35:29 am
Just to give you some extra advice; summarise the article into 5 sentences i.e. if you were asked to describe what the article was about in a paragraph, what would you write?
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Ben Collighan
14/6/2015 08:12:28 am
Some businesses don't always go for the idea of profit maximisation where MC=MR, firms will do this for a number of reasons but the main reason is to achieve profit maximisation in the long run taking a loss in the short run. Some businesses would like to chase the idea of survival, this is one example of many stated in the article however survival is mainly an objective of a firm within its first three years as staying open is hard for new firms. A multi-product firm is a firm that operates in more than one market for example virgin, they operate in the broadband market and also in the airline market this is an example of a multi-product firm. We have a mixed economy which means we have both public sector businesses and private sector businesses. Some businesses become private after being public businesses and this transformation is called privatisation and an example of this is royal mail who became a private sector business in 2013.
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Josh
14/6/2015 06:47:03 pm
Conventional theory suggests businesses are enterprises operating solely to gain the largest possible profit as a result of their knowledge and market power. This relates to profit maximisation behaviour.
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Dom
14/6/2015 06:52:42 pm
The article is overall explaining about different business objectives and the benefits and drawbacks from some of the objectives. The main part of the article is explaining that there are multiple different business objectives and the difference in the objective choices between private and public sector business. It explains that there are also multiple reasons why businesses drift away from the profit maximisation objective. Some of the main reasons are that large business cannot pinpoint their exact costs of production so they will not know the exact level when they reach profit maximisation. Also a lot of firms have multiple are multi product firms so they will have to keep track of ever-changing preferences of consumers.
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Matty
14/6/2015 06:55:29 pm
The UK has a mixed economy, this means there are private sector businesses- owned by their shareholders and public sector businesses owned partly or wholly by the state. Many businesses are profit seeking but not profit maximising, means moving away from an output where MC=MR. More companies are refocusing their priorities towards the welfare of their suppliers, employees and the planet. Different business objectives; profit maximisation, revenue maximisation, surviving a recession. Cost plus pricing is where a business might look to add a profit margin on top of average cost.
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