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Sales maximisation

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Sales maximisation - definition

Sales maximisation 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 longer term gain. For example, while seasonal ‘sales’ may result in lower profits, space is created as stocks are cleared, and more profitable lines can be introduced.

Graphically, it means selling at a quantity where AR = ATC, as shown (at point B.)

Sales maximisation graph




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