A large corporation's profit objective may not be profit or wealth maximization, because
A) stockholders have little power in corporate decision making.
B) management is more interested in maximizing its own income.
C) managers are overly concerned with their own survival and may not take all prudent risks.
D) All of the above
D
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Minneapolis business Rogue Chocolatier sells specialty chocolate bars with a high cocoa content. If Rogue's average total cost decreases as the business increases plant size, then Rogue experiences
A) economies of scale. B) diseconomies of scale. C) diminishing marginal returns. D) constant returns to scale.
According to Keynesian coordination failure theory, the primary causes of business cycles are
A) shocks to aggregate demand. B) monetary factors. C) technology shocks. D) waves of self-fulfilling optimism and pessimism.
In 2011, the poverty line for a family of four in the U.S. was
a. $60,974. b. $23,021. c. $20,988. d. $17,642.
Developing countries are damaged by dead capital because
A. it reduces too much household saving. B. it results in inefficiencies that greatly reduce the rate of return on capital investment. C. it replaces too many workers, creating unemployment. D. it must be sold as scrap.