Question: Profit Maximization and value maximization are two approaches to optimization in economics. Which approach is more comprehensive? Explain why? Suppose that the manager of a

  1. Profit Maximization and value maximization are two approaches to optimization in economics. Which approach is more comprehensive? Explain why?
  2. Suppose that the manager of a firm, that uses coal energy, decides to install new equipment that will reduce air pollution like acid rain. Explain how this decision will affect the value of the firm.

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