How did the advent of the modern corporation reduce the likelihood that a firm's goal is to maximize profit? What has replaced this goal?
The corporation separates owners—stockholders—from decision makers. Although stockholders typically
want the firm to maximize profit, the managers may have other goals. They may choose, instead, to
maximize sales or to safeguard the viability of the firm. John K. Galbraith and Richard Lester believe that
managers seek to preserve the managerial class, even at the expense of profit.
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Structural unemployment is:
A. the result of the ordinary difficulty of matching employee to employer. B. persistent, long-term unemployment. C. short-term unemployment. D. correlated with the ups and downs of the business cycle.
The above table shows the distribution of income in two imaginary countries, Alpha and Beta
a) What does the table tell you about the second 20 percent group in each country? b) Calculate the cumulative percentage for both countries. c) Interpret the cumulative percentage for the third 20 percent group in both countries.