Short-term profit maximization

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1. How does the theory of the firm differ from short-term profit maximization? Why is the former superior to the latter?

2. What effect would each of the following have on the value of the firm? explain.

a. A new advertising campaign increases the sales of the firm substantially

b. A new competitor enters the market.

c. The firm is required to install pollution control equipment

Reference no: EM13903842

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