These goals consistent with profit maximization

Assignment Help Business Economics

Reference no: EM131392020

1) If the goal of the firm is both short- and long-run profit maximization,

(i) explain why a firm may sacrifice short-run profits for long-run growth and profitability;

(ii) explain how and why the management team of the firm may have different objectives (goals) than the owners of the firm; and

(iii) explain how the owners of the firm can bring the management team's objectives (goals) to be consistent with the owners' goals.

2) Discuss goals a firm might have which seem to not agree with profit maximization. are these goals consistent with profit maximization?why or why not?

Reference no: EM131392020

Questions Cloud

Reduce output and increase their prices and profits : Collusion makes firms better off because if they act as a single entity (a cartel) they can reduce output and increase their prices and profits. But some cartels have failed and others are unstable. Which of the following is a reason why cartels ofte..

Developing countries borrow in international credit markets : When developing countries borrow in international credit markets, many find that they must borrow in currencies other than their own (such as dollars, yen, or euros). Why are international creditors willing to make loans in dollars, yen, or euros but..

Keeps the beverage colder for longer period of time : Suppose three companies, Optimax, Megachug, and Thirstoid, dominate the sports drink market. Optimax enjoys the largest market share. Megachug, dissatisfied with its market share, begins offering its sports drink in a new container that, according to..

Recently secured an employment with medical benefits : You recently secured an employment with medical benefits. Is there a difference in your demand for medical care services before and after employment? Use two demand curves to show your consumption of medical care before and after this employment.

These goals consistent with profit maximization : If the goal of the firm is both short- and long-run profit maximization, Discuss goals a firm might have which seem to not agree with profit maximization. are these goals consistent with profit maximization?why or why not?

The recent financial crisis : The money multiplier declined significantly during the recent financial crisis of 2008 - 2010. Why did the money multiplier decline in this period? Yet, the M1 money supply increased by more than 20 percent during the recent financial crisis. What ex..

Large dollar-denominated external liabilities : Many large developing countries with large dollar-denominated external liabilities experienced large depreciations of their currencies between 1990 and 2003. What effects, if any, did these depreciations have upon these countries' external wealth and..

High degree of instrument independence : In what way does the Federal Reserve have a high degree of instrument independence? If it has a specific dual mandate from Congress to achieve "maximum employment and low, stable prices", then how does it have goal independence?

European central bank pursues contractionary monetary policy : If the European Central Bank pursues a contractionary monetary policy, what will happen to the value of the U.S. dollar? Specifically, will the dollar appreciate or depreciate. Include the relevant graph and a brief explanation. You must use the asse..

User Account

All Pages