Maximisers behave in a traditional economic way and always try to make the best possible choice from all available alternatives (the implicit assumption being made here is rational choice).
Satisficers examine only a limited set of alternatives and choose the best option between them.
Loss Minimisation
Losses are minimised at the same output as profit maximisation - the same condition applies i.e. firms making a loss should produce at an output where marginal revenue + marginal cost
Profit Maximisation
Profits are maximised at an output level where marginal cost = marginal revenue (MR = MC)
Revenue Maximisation
Revenues are maximised at an output where marginal revenue = 0
Sales Maximisation
Supplying the largest output possible consistent with earning at least normal profits where Average Revenue = Average Costs (AR = AC)
Satisficing behaviour
Satisficing involves the owners of a business (shareholders) setting minimum acceptable levels of achievement of either revenue operating profits
Reasons for different objectives
Managerial objectives/ managerial utility
Information constraints/ gaps
Small businesses/ start-ups - different aims
State-owned corporations
Market share as a business objective
Many businesses aim to increase or protect their market share. This is particularly true in oligopolistic markets which is a market dominated by a handful of large businesses.
