If firms satisfice this means that ?

A. Managers need to be paid enough to stop them leaving the company
B. Objectives such as profit are not maximized
C. Short-run profits are maximized
D. Long-run profits are maximized

Sales maximization is likely to take place in markets that are ?

A. Contestable
B. Perfectly competitive
C. Oligopolistic
D. Export-oriented

The merger of fiber producer and a clothing firm would be _____ merger?

A. Horizontal
B. Vertical
C. Conglomerate
D. Homogeneous

The merger of two clothing firms would be a ____ merger?

A. Horizontal
B. Vertical
C. Homogeneous
D. Conglomerate

Public limited companies may not maximize their profits because ?

A. They are afraid of encouraging takeovers.
B. Shareholders have little control over managers.
C. Shareholders want higher dividends.
D. Both the first and third option.

The divorce of ownership and control tends to occur in ?

A. Sole proprietors
B. Partnerships
C. Public limited companies
D. Monopolies

A firm may be unable to maximize profits because it ?

A. Does not know its mc and mr
B. Has too much information
C. Has too little information
D. The first and third option

Williamson suggests that managers might NOT try to achieve ?

A. Respect of other managers.
B. Maximum profits.
C. Job security
D. A large number of subordinates

The divorce of owner ship and control causes a problem usually referred to by economists as ?

A. Profit myopia
B. Principal-agent problem.
C. Merger mania.
D. Moral hazard

A sale maximizing firm will produce where ?

A. Ar minus ac is maximized
B. Mc = mr
C. Quantity sold is maximized
D. Sales revenue is maximized