What is a firm's fundamental goal and what happens if the firm doesn't pursue this goal?
What will be an ideal response?
A firm's fundamental goal is to maximize its profit. If the firm fails to maximize profit it is either eliminated or bought out by other firms maximizing profit.
You might also like to view...
Which of the following is considered a macroeconomic topic?
A. iTunes raises the price of all its music. B. iTunes raises the price of its pop artists’ music only. C. Jay-Z decides to sell his Brooklyn Nets minority ownership. D. The labor force participation rate in the US fell by 1 percent in 2010
The ways to address agency costs include all EXCEPT
a. running background checks on prospective employees b. requiring employees to punch time clocks c. spot checks of the quality of employee's work d. providing better coffee machines in the lunch room
Appendix: Research suggests that an auction for a private value item will yield the HIGHEST payout if:
a. we use a Dutch auction b. we use an English auction c. we use only cash, and not allow credit cards d. use a fixed price
A government mandated price increase for doodads will: a. decrease the quantity of doodads supplied but increase the quantity of doodads demanded. b. increase the quantity of doodads supplied but decrease the quantity of doodads demanded. c. increase the demand for doodads and decrease the supply of doodads
d. decrease the demand for doodads and increase the supply of doodads.