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SALES MAXIMIZATION: The notion that business firms (especially those operating in the real world) are primarily motivated by the desire to achieve the greatest possible level of sales, rather than profit maximization. On a day-to-day basis, most real world firms probably do try to maximize sales rather than profit. For firms operating in relatively competitive markets, facing relative fixed prices, and relatively constant average cost, then increasing sales is bound to increase profits, too. Moreover, according to the notion of natural selection, even firms that seek to maximize sales, those that also maximize profit will remain in business.

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Lesson 22: Factor Supply | Unit 4: Determinants Page: 20 of 25

Topic: Geographic Mobility <=PAGE BACK | PAGE NEXT=>

  • More on geographic mobility:

  • Geographic mobility is the mobility, or movement, of factors of production from a productive activity in one location to a productive activity in another location.
  • In particular, geographic mobility is the ease with which resources can change locations.


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EXCHANGE RATES, AGGREGATE DEMAND DETERMINANT

One of several specific aggregate demand determinants assumed constant when the aggregate demand curve is constructed, and that shifts the aggregate demand curve when it changes. An increase in exchanges rates causes an increase (rightward shift) of the aggregate curve. A decrease in the exchanges rates causes a decrease (leftward shift) of the aggregate curve. Other notable aggregate demand determinants include interest rates, the money supply, inflationary expectations, consumer confidence, and the federal deficit.

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Today, you are likely to spend a great deal of time surfing the Internet trying to buy either a pair of blue silicon oven mitts or a coffee cup commemorating the 2000 Olympics. Be on the lookout for bottles of barbeque sauce that act TOO innocent.
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More money is spent on gardening than on any other hobby.
"I do not believe in a fate that will fall on us no matter what we do. I do believe in a fate that will fall on us if we do nothing. "

-- Ronald Reagan, 40th US president

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