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.
b
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Under what circumstances would you expect economic profits to be zero in a particular industry?
A. During a recession B. When there is little competition in the industry C. When the industry is neither expanding nor contracting D. When the demand for the product being produced is increasing
The resource termed labor consists of the physical, but not the mental, talents that people contribute to the production process
Indicate whether the statement is true or false
(Consider This) In 2013, McDonald's introduced Fish McBites, which failed to catch on with the public and was subsequently dropped from the menu. This failure illustrates the idea of
What will be an ideal response?
Suppose that your public library charges a fixed monthly membership fee of $12. Members are allowed to check out as many books as they want under this plan. The average member checks out 4 books per month
Suppose that your public library changes its policy. Now each book costs $3 to check out but there is no longer a monthly membership fee. What effect do you think the new policy will have on the total number of books checked out from your library each month? The new policy is likely to ______the number of books checked out because ________. A) leave unchanged; members have already shown that they are willing to pay $12 to check out 4 books per month B) leave unchanged; the average cost of the library service is the same under both plans C) reduce; the marginal benefit of checking out books is now lower under the new policy D) reduce; the marginal cost of checking out books is now higher under the new policy E) increase; the average benefit of checking out more than 4 books is now higher under the new policy