A large corporation's profit objective may not be profit or wealth maximization, because
A) stockholders have little power in corporate decision making.
B) management is more interested in maximizing its own income.
C) managers are overly concerned with their own survival and may not take all prudent risks.
D) All of the above
D
You might also like to view...
While purchasing _____ an individual whose cost of time is low will visit a larger number of dealers compared to the individual whose cost of time is high
a. a rare piece of jewelry b. a refrigerator c. a pair of jogging shoes d. a cabinet for keeping books
If a firm hires one worker and eliminates four units of capital, and hires one more worker and replaces three more units of capital, keeping output constant, then
A) workers and capital are perfect substitutes. B) the firm is operating inefficiently because capital is more efficient than workers. C) the firm is experiencing a diminishing marginal rate of technical substitution. D) there are decreasing returns to scale.