Suppose internal rent seeking increases as firm size increases. What would this say for the ‘optimal’ size of firms?
Answer to relevant QuestionsServices marketing is a current business buzzword. It is a branch of marketing that focuses on services. Why would it be different from the marketing of goods?The owner of Whole Foods Markets, John Mackay, argues that firms should maximize stakeholder value. He uses his firm as an example. Mackay takes money from the profits and allocates it to community charities and other good ...Explain why the price elasticity of demand is negative. What would the price of demand be for a “prestige good,” one for which quantity purchased increases a price increases? How do you reconcile these two statements?What is the economist’s interpretation of costs? What does the following statement mean: “the concept of cost is far richer (pardon the pun) than the dollars and cents you hand over at the cash register.”?a. Costs are ...Explain the competitive process when a firm earns a positive economic profit.
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