The primary objective of a for-profit firm is to ___________
a. maximize agency costs
b. minimize average cost
c. maximize total revenue
d. set output where total revenue equals total cost
e. maximize shareholder value
e
You might also like to view...
Suppose that in 2016, all prices in the economy double and that all wages and salaries also double. In 2016 you
A) are no better off or worse off than you were in 2015 as the purchasing power of your salary has remained the same. B) are worse off than you were in 2015 as you can no longer afford to buy as many goods and services. C) are better off than you were in 2015 as your salary is higher than it was in 2015 and you can now buy more goods and services. D) cannot determine whether you are better off or worse off than you were in 2015, because the purchasing power of your salary cannot be determined.
Some call the Great Recession the:
A. period when the economy does not grow for four consecutive quarters. B. recession that began in 2007 due to the decline in consumer spending when the housing bubble burst. C. period of high inflation that took place in the early 1970s. D. period of economic stagnation that took place in the early 1990s.
When the price level falls
a. the interest rate rises, so the quantity of goods and services demand rises. b. the interest rate rises, so the quantity of goods and services demand falls. c. the interest rate falls, so the quantity of goods and services demand rises. d. the interest rate falls, so the quantity of goods and services demand falls.
The profit-maximizing level for all firms, regardless of industry structure, is the output level where
A. ATC = P. B. P = MC. C. TR = MC. D. MC = MR.