In which situation might a company NOT want to maximize profit?
A. A small business owner who sells a highly specialized product at a high price in order to compete with more established businesses in the area
B. A family-owned company that has to decide between hiring a family member and hiring a highly-qualified external candidate
C. A conglomerate with a highly streamlined supply chain who sells generic goods
D. A corporation that has performed poorly in the last two quarters and is looking for new upper-management
B. A family-owned company that has to decide between hiring a family member and hiring a highly-qualified external candidate
You might also like to view...
If investors feel that business conditions will deteriorate in the future, the demand for loans and the real interest rate in the loanable funds market will change in which of the following ways in the short run?
A) Increase/Increase B) Increase/Decrease C) Decrease/Increase D) Decrease/Decrease E) Decrease/No change
Which of the following is not a valid point in debating the merits of increasing government expenditures or cutting taxes during a recession?
a. A cut in the marginal tax rate increases the incentives to find a job and work longer hours. b. Consumers will save a portion of a tax cut. c. The government may use the increase in expenditures on projects with little value, particularly if it wishes to respond quickly. d. There is no evidence that tax cuts have been followed by increases in economic growth.