Multiple Choice
The idea that firms pursue actions to maximize profits is:
A) generally rejected by economists in favor of the idea that firms maximize revenues.
B) a reasonable assumption, because firms that do not maximize profits will see their market share drain away to their profit-maximizing rivals.
C) easier to accomplish when management has little oversight from shareholders and boards of directors.
D) refuted by evidence that firms engage in goodwill advertising and other charitable activities.
Correct Answer:
Verified
Correct Answer:
Verified
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