A firm’s objectives are also viewed as the motives of the entrepreneur(s) who owns and run

the firm. Milton Friedman argued in the 1970s that raising income was the only aim of
industries. This was focused on the premise that; through expanded jobs such intervention
would benefit society. Friedman claimed that it would make a corporation less competitive
and thus less advantageous to the organization, staff and owners to engage in such practices.
The main and most sought at goals of a firm are Profit maximization, Market dominance,
Growth, and Sales & revenue maximization. This essay would include the goals of the firm
which are: profit maximization, growth, revenue maximization, sale maximization and
market dominance.
Profit maximisation is the process that companies undergo in order to determine the best
output and price levels in order to achieve its goals. Profit maximization is assumed to be the
dominant goal of atypical firm. This means selling a quantity of a good or service, or fixing a
price, where total revenue is at its greatest above total cost. In addition, profit maximisation is
a good thing for a company, but can also be a bad thing for consumers if the company starts
to use cheaper products or decides to raise prices as a way to maximize profits. a firm’s
marginal cost equals marginal revenues i.e., MC = MR.
Secondly, another goal of the firm would be growth. Firms may seek to maximize the growth
in business assets rather than profits and sales, as this may ensure that firm survives in the
long run. The growth should be in terms of increase in profit, revenue, capacity, number of
employees and employee prosperity, etc. It is stated that the popular U.S. economist J.K.
Galbraith has carried out an empirical analysis of large companies and concluded that
managers follow not one but several objectives, such as revenue maximization, utility
maximization, etc., along with these objectives, managers retain the primary goal of
achieving the maximum level or the highest possible level of production growth. They are
still seeking to boost their reputation, technological dominance and market strength. They use
the aid of large-scale, powerful ads to manipulate the customer in order to accomplish the
above-mentioned goal.
Revenue maximization is another goal of the firm. This is when a business aims to maximize
the total value of their sales. This is defined by producing at the output where marginal
revenue equals zero. i.e., MR = 0. A revenue maximizing goal would involve producing at an
output where marginal revenue (MR) is zero.MR declines as output increases.so therefore if
MR is positive, a further increase in output will raise total revenue (TR) but if output
increases beyond the level where MR is zero, MR will be negative and hence TR will fall.
Sale maximization is a goal of the firm. Sales maximization is a theoretical objective of a
firm which involves selling as many units of a good or service as possible, without making a
loss. This means sacrificing some short-term profit with a view to achieving a long-term gain.
Sales maximization also means to make the most of the sales income available without a loss
to the company. It's a pretty rational market strategy. Overall, companies usually aim to make
as much money as possible at the lowest possible expense, which will translate to higher
earnings. So, for example, if you have your own restaurant, one way to boost profits could be
to sell the new drink to consumers at a discount before you get them hooked on the new
beverage. Then, you're going to raise the price a little at a time before you make a profit.
Lastly, market dominance is considered a goal of the firm, however some economists argue
that firms attain dominance only by being relatively more efficient than their rivals and retain
leadership only by staying more efficient than their rivals. Others argue that efficiency is not
the only source of dominance and that leaders can retain preeminence even if they are
inefficient.
In conclusion, the objectives of a firm are clearly defined goals that are set by the
management or by the owners of the firm. The directions and modes in which a firm should
operate are come from those objectives.