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Sales v Profit Maximisation Worksheet [Virtual Learning Arcade]

A brief interactive worksheet using the sales maximisation simulation looking at the effects when firms adopt sales maximisation and profit maximisation strategies.

Sales versus profit maximisation

The aim of these questions is to identify under which maximisation theory the consumer is better off

Is the sales maximisation output level likely to be higher or lower than that of a profit maximising firm, assuming the firm operates in an imperfect market?
(select one answer)

(a) * higher
(b) * lower

Given the following conditions, is the consumer better or worse off if the firm adopts sales maximisation compared to profit maximisation?; Try This

  • Price Elasticity of Demand = 2.0
  • Fixed Costs (£) = 100
  • Variable Costs (£) = 25
  • Desired Profit Level = 50

(Type your answer to the previous question in the box below, then click on explain)


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Submitted by bized on Wed, 14/03/2001 - 13:00