Final answer:
The maximum market potential percentage attainable for a company's product is known as the company sales potential. It is different from market potential, which accounts for all sales by all competitors in the market, and is focused on the firm's own market share capabilities.
Step-by-step explanation:
The maximum percentage of market potential that an individual firm can expect to obtain for a specific product is the company sales potential. This refers to the firm's own estimate of the maximum of market share it can achieve for a product. The concept of company sales potential is distinguished from market potential, which is the total potential sales for all firms in a market, and from market share goal, which typically refers to the firm's targeted share of this total potential.
Market share is the percentage of total sales in the market that a firm secures. A firm's market share can be influenced by factors such as the firm’s marketing strategy, product quality, and customer service. It's also closely related to the concept of company sales objective, which is the specific goal that a company sets for the amount of product it aims to sell.
To achieve the highest profit, firms must compare total revenue and total cost to determine the most profitable quantity to produce and sell. This concept is particularly important for firms in perfectly competitive markets that must accept the prevailing market price for their goods. For firms with market power, such as monopolies, marginal revenue differs from price due to the downward sloping demand curve they face.