Archive | Objectives

The following points highlight the two main objectives of a firm. The objectives are: 1. Maximization of Output Subject to a Given Cost 2. Minimization of Cost Subject to a Given Output. Objective # 1. Maximization of Output Subject to a Given Cost: Suppose, a firm purchases two inputs—labour and capital—with a given expenditure to produce a commodity. Further, let [...]

Let us learn about the objectives of business firms. A firm is a unit engaged in the production and/or distribution of goods and services. All firms (e.g., sole proprietorship, joint stock firm, cooperative, public sector firms, etc.,) operating under perfectly competitive framework or monopoly or monopolistically competitive or oligopoly aim at profit maximization, just as all students of all countries [...]