1.Discuss the benefits of pursuing revenue maximisation?
Revenue Maximization is a theory which states that if the seller sells the service or good at a lower price then it will increase the revenue by selling a high volume of goods. It is a theoretical objective used by firms that try to sell their products at a lower price which receives the greatest revenue from sales. This would occur at a point where MR is equal to zero. If MR is more than zero or it is positive, then an extra unit sold must add to the total revenue but revenue maximization will not be achieved. Only when MR equates zero then there will be the maximization of revenue. It is a useful way to avoid issues associated with the supply chain. And also improves the overall operation of the firms. It is a simple way to increase the number of customers. There are several advantages of maximizing the revenue which can be gained by firms.
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