“For smaller firms managed by their owners in competitive markets, profit considerations are apt to dominate almost all decisions. However, managers of giant corporations have little contact with stockholders, and often deviate from profit-maximizing behavior. Get real. Look at Tyco, for Pete’s sake.” Discuss this statement.
Answer to relevant Questions“If excess profits are rampant in the oil business, why aren’t the stockholders of industry giants like Exxon Mobil, Chevron Texaco, and Royal Dutch Petroleum making huge stock-market profits?” Discuss this statement.Competitive market prices are determined by the interplay of aggregate supply and demand; individual firms have no control over price. Market demand reflects an aggregation of the quantities that customers will buy at each ...The Hair Stylist, Ltd., is a popular-priced hairstyling salon in College Park, Maryland. Given the large number of competitors, the fact that stylists routinely tailor services to meet customer needs, and the lack of entry ...In 2004, OPEC reduced the quantity of oil it was willing to supply to world markets. Explain why the resulting price increase was much larger in the short run than in the long run.Indicate whether each of the following statements is true or false, and explain why.A. In competitive market equilibrium, social welfare is measured by the net benefits derived from consumption and production as measured by ...
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