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, market dominance, growth
and sales and revenue maximization.

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.

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