Profit maximization is
A. the only motive of any firm’s management.
B. a behavioral assumption to simplify analysis.
C. the same as satisficing.
D. a literal description of a firm’s behavior.
Answer: B
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Refer to Figure 13-1. Ceteris paribus, a decrease in firms' expectations of the future profitability of investment spending would be represented by a movement from
A) AD1 to AD2. B) AD2 to AD1. C) point A to point B. D) point B to point A.
Ethyl does not like redheads and refuses to hire any at her business. Paul was the perfect job candidate on paper, but the personal interview revealed that he was a redhead. Are there any costs to Ethyl for not hiring Paul?
why do foreigners export goods and services to buyers in the United States?
What will be an ideal response?
Suppose that Figure 7.4 shows an industry's market demand, its marginal revenue, and the production costs of a representative firm. If the industry was perfectly competitive, a representative firm would charge a price of:
A. $35. B. $25. C. $20. D. $16.