Cards (2)

    • What is a satisficing firm?
      A firm that doesn't attempt to maximise anything so that each each goal of the business, such as increasing market share, can be achieved at the same time
    • Why do firms adopt the objective of satisficing?
      Because shareholders and managers have conflicting objectives, firms might want to keep profit down to avoid being bought in a merger, some firms make just enough money to keep the shareholders happy before pursuing other objectives