Alternative Theories Of The Firm

A. growth.
B. sales revenue
C. managers utility
D. profits.

A. horizontal
B. vertical
C. conglomerate
D. homogeneous

A. sales revenue maximization
B. maximization the growth of sales revenue.
C. Sales maximization
D. long-run profit maximization.

A. AR minus AC is maximized
B. MC = MR
C. quantity sold is maximized
D. sales revenue is maximized

A. profit myopia
B. principal-agent problem.
C. merger mania.
D. moral hazard

A. respect of other managers.
B. maximum profits.
C. job security
D. a large number of subordinates

A. does not know its MC and MR
B. has too much information
C. has too little information
D. The first and third option

A. sole proprietors
B. partnerships
C. public limited companies
D. monopolies

A. they are afraid of encouraging takeovers.
B. shareholders have little control over managers.
C. shareholders want higher dividends.
D. both the first and third option.

A. firms do not know how to maximize profits.
B. firms have other aims
C. it does not explain monopolistic competition
D. Both the first and second option