It may be rational for the management of a firm not to try to maximize profits. Discuss

Question:

"It may be rational for the management of a firm not to try to maximize profits." Discuss the circumstances under which this statement may be true.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Economics Principles and Policy

ISBN: 978-0538453653

12th edition

Authors: William J. Baumol, Alan S. Blinder

See More Books

Question Posted: Apr 12, 2016 07:13 AM

See More Questions

The management of a firm that ties employee bonuses to return on common equity repurchases some of the firms outstanding shares. What is the effect of this transaction on shareholders wealth?
The management of a firm wants to introduce a new product. The product will sell for $4 a unit and can be produced by either of two scales of operation. In the first, total costs are TC 5 $3,000 1...
Discuss the nature of the principal-agent problem. Determine which is the principal and which is the agent in each of the following relationships: a. A firm that produces goods for export and the...
Glencoe First National Bank operated for years under the assumption that profitability can be increased by increasing dollar volumes. Historically, First Nationals efforts were directed toward...
A company like Golf USA that sells golf-related merchandise typically will have inventory items such as golf clothing and golf equipment. As technology advances the design and performance of the next...
What is the earnings per share ratio used for?
Consider the simple linear regression model fit to the ozone data in Problem 2.13. Problem 2.13 Davidson ("Update on Ozone Trends in California's South Coast Air Basin," Air and Waste, 43, 226, 1993)...
Refer to the previous question. Suppose that each of the audit activities can be crashed by the amounts indicated in the following table. a. What is the earliest the audit could be completed and what...
In the same period, its credit card division was ranked second, having about 2.4 million customers. The bank offered various categories of credit cards such as Premium (Solid Gold, Amex Gold),...
Constance Inc. (CI) is a small private company located in Miramichi, New Brunswick. Cl was incorporated in late 20X0 and has 10 common shareholders, consisting of two founders and eight of the...
A firm has the demand and total cost schedules given in the following table. If it wants to maximize profits, how much output should it produce? 12671 ice-65432 in 1 2 3 4 5
Suppose that the following table is your record of exam grades in your Principles of Economics course: Use these data to make up a table of total, average, and marginal grades for the five exams....
Suppose that the random variable X has a lognormal distribution with parameter values = -0.3 and = 1.1. Find: (a) E(X) (b) Var(X) (c) The upper quartile of X (d) The lower quartile of X (e) The...
How is this calculated in and where recorded IRS forms : Sold 500 shares of SBUX stock for $35,000 on December 1, 2023. The stock had been purchased by Jon on July 1, 2008 for $20,000 and was...
Content Area The financial statement that summarizes revenues and expenses is the statement of stockholder's equity Balance sheet Statement of retained earnings Income statement.
To mitigate a risk on a project, you need to buy and install a piece of equipment. Vendor A sells the equipment for $20,000 and Vendor B sells it for $16,000. If you install the equipment from Vendor...
During 2022, Lehrman Company earned net income of $170,000 and paid dividends to preferred stockholders of $20,000. If the company had 30,000 shares of common stock outstanding for the entire year,...
Solve for side x (round your answer to the nearest tenth): 30 4 X
According to Deuteronomy 32:30, How could one man chase a thousand, or two put ten thousand to flight, unless their Rock had sold them, unless the Lord had given them up? Letting x represent the...
Find a polar equation for the curve represented by the given Cartesian equation. 4y 2 = x
Treasury bills have a fixed face value (say, $1,000) and pay interest by selling at a discount. For example, if a one-year bill with a $1,000 face value sells today for $950, it will pay $1,000 $950...
Explain what a $5 billion increase in bank reserves will do to real GDP under the following assumptions: a. Each $1 billion increase in bank reserves reduces the rate of interest by 0.5 percentage...
Explain how your answers to Test Yourself Question 5 would differ if each of the assumptions changed. Specifically, what sorts of changes in the assumptions would weaken the effects of monetary...
discuss the evolutionary adaptations of the respiratory system across taxa, highlighting the diversification of respiratory structures and mechanisms in response to ecological niches and selective...
1. A Pringles chip can be thought of mathematically in two ways: a. You can consider it as a thin elliptic slice of potato dough that is afterwards molded and fried. If the slice can be represented...
How does the study of epigenetics contribute to our understanding of how environmental factors influence gene expression and phenotypic variation within populations over evolutionary time scales ?

It may be rational for the management of a firm not to try to maximize profits. Discuss

Question:

Step by Step Answer:

Some firms are nonprofit firms and they definitely do not maximize profits A nonprofi...View the full answer

Economics Principles and Policy

Students also viewed these Economics questions