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Managerial Economics 12th Edition by Mark Hirschey
Edition 12ISBN: 978-1439042144Managerial Economics 12th Edition by Mark Hirschey
Edition 12ISBN: 978-1439042144 Exercise 1
Is it appropriate to view firms primarily as economic entities?
Explanation
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Firms are the entities that not just create economic impact in the society, but also have a valuable relationship with customers, shareholders, creditors etc. In carrying the business, firms have effect on economy's resources, employment, economic growth etc. Therefore, a firm is an economic entity that works for its profit motive and society, as it shares relation with the society, either directly or indirectly.
However, along with the profit-maximization motive, firms these days are working towards the betterment of the economy and are doing a lot of work for the society. Therefore, viewing the firms primarily as economic entities would be wrong since apart from the aim of profit-maximization, firms also concentrate on various other factors.
However, along with the profit-maximization motive, firms these days are working towards the betterment of the economy and are doing a lot of work for the society. Therefore, viewing the firms primarily as economic entities would be wrong since apart from the aim of profit-maximization, firms also concentrate on various other factors.
Managerial Economics 12th Edition by Mark Hirschey
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