--%>

Goals of the Firm

Most of the economists believe firms tend to proficiently maximize the profits since of: (i) Stockholder pressure. (ii) Competition for the management positions. (iii) Principal-agent conditions. (iv) The chance of corporate take-over.

Choose the right answer from the above options.

   Related Questions in Microeconomics

  • Q : Impact of Monopoly in welfare Discuss

    Discuss the impact of a monopoly  on the welfare  of the citizens of the country. In  your discussion you should include policies that can  be implemented by the government too reduce the abuse of dominant position in the market.

  • Q : Maximum profit by equilibrium When a

    When a monopolist reaches equilibrium: (1) its profits are at a maximum. (2) price equals marginal cost. (3) average cost is at its minimum. (4) marginal cost is at a minimum. Can someone explain/help me with best solution about pr

  • Q : Hypothetical demands for perfect price

    In this figure demonstrating hypothetical demands for socket sets, there demand curve: (1) D1D1 is perfectly price-inelastic. (2) D2D2 is perfectly price elastic. (3) D3D3

  • Q : Buying something when expect a price to

    Buying since you expect a price to increase, at that point you will sell, which is termed as: (w) arbitration. (x) speculation. (y) profiteering. (z) arbitrage. Hey friends please give your opinion for the problem

  • Q : Are you being charged too much for

    This exercise inspects the higher prices charged in UK for music downloads as compared to the rest of Europe.

  • Q : Profits of monopoly firm A monopoly

    A monopoly firm's profits: (w) equal only normal profits in long-run equilibrium. (x) may be whatever level the firm wishes. (y) are maximized where MC = MR. (z) tend to be lower than that of pure competitors. Hell

  • Q : Bargaining power of the union problem

    When a firm's inventories are comparatively high, then the bargaining power of union is: (i) Huge, since the firm cannot afford interruptions of the production. (ii) Great, since the firm's gains are low. (iii) Low, since the firm can sell its invento

  • Q : Resource market in equilibrium demand

    When the resource market shown in this illustrated figure is initially within equilibrium along with demand curve D0: (w) owners of these resources currently receive no economic rents. (x) economic rent is specified by area

  • Q : Examples of Labor

    The contracts needing employment after some worker’s jobs have been made obsolete through automation are illustrations of: (i) Blacklisting. (ii) Labor-reducing protectionism. (iii) Check-off provisions. (iv) Yellow dog contracts. (v) Feather-bedding.

  • Q : Explanation of Substitution Effect The

    The substitution effect helps most in describing why: (1) Demand curves slope down. (2) Goods are either complements or substitutes. (3) Air travel costs less than by walking the cross country. (4) Uncertainty regarding quality justifies govt. control