The objectives of the firm can be viewed as the motives of the entrepreneur/s who own and run the firm. There a number of goals that firm can pursue in its day to day operations - it may try to maximise profits, sales or growth, meeting shareholder expectations, or increasing market share.
Maximising profits - making the biggest possible profit, or the smallest possible loss - is recognised as the main objective of most firms. Profit is the difference between the firm's total revenue (output sold multiplied by price) and its total cost of production.…
