The reason firms often choose sales maximization as a goal is because
A)that is where profits are maximized.
B)it is impossible to maximize profits.
C)firms are managed and owned by different groups of people with different goals.
D)owners believe setting price/output to maximize profits is unfair to consumers.

Question

Quizplus · Accepted Answer

Firms are owned and managed by different groups of people with different goals, such as shareholders, managers, and employees. Setting a goal of sales maximization allows for a balance between the different groups' interests and can lead to increased market share, status, and power, even if it does not result in the absolute highest profits.

The Reason Firms Often Choose Sales Maximization as a Goal