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Q: Should firm behave ethically all time?
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Continue Learning about Economics

When a firm is maximizing profit what else will it maximize?

When a firm maximizes its profit, it automatically maximizes its shareholder value. When both profit and the shareholder value increase, in course of time, the overall firm value will increase. All these would undoubtely increase its share price in the market as well.


Was there a time when business was ever ethical?

Certainly. Throughout history, some businesses have been more ethical and some have been less so. In smaller communities, small businesses have been almost as subject to the local impact of reputation as individuals, and failure to behave ethically was likely to result in business failure as other members of the community would be less likely to trust and deal with the less ethical business. Larger businesses, and even small businesses in large communities, have always been less subject to those pressures, but that does not mean that some of those were not ethical in their dealings.


How do investors usually act during a bear market?

At this time in a market cycle investors usually behave in selling manner. This is often seen as a time of profit taking and a show of a lack of confidence in the market at that time. Investors are stopping losses and this is seen as difficult times.


Is the amount of time that separates the short run from the long run the same for every firm?

Not necessarily, unless you consider only the firms in one sector of the economy.


What is a production period that allows changes only in variable inputs?

This production period is called the short run production period. This means that the amount of capital in the firm is fixed and cannot change because it takes time for the firm to receive ordered capital. In this situation the firm must change labor and materials (variable inputs) in order to maximize profits. The opposite of the short run production period is the long run production period. In the long run all inputs are flexible and the firm can theoretically maximize profits at any level of capital.

Related questions

Hastings report biggest inhibitors to people's ability to behave ethically?

A lack of time to reflect to consider ethics


What leagal and ethical responsibilities does a firm have to its employees when a decision to cease operations is made?

Businesses should legally inform employees that they are closing in a certain amount of time. Ethically, they should help them get other jobs.


What did The Hastings Center Report reading this week one of the biggest inhibitors to people's ability to behave ethically is?

A lack of time to reflect to consider ethics.


According to the hastings report one of the biggest inhibitors to people's ability to behave ethically is?

I took the quiz and it is C) A lack of time to reflect to consider ethics


According to The Hastings Center Report reading this week, one of the biggest inhibitors to people's ability to behave ethically is?

A lack of time to reflect to consider ethics.


How should we have a firm but in friendly manner?

Hold to your convictions, but spend more of your time listening, rather than talking.


Can you receive two loans from two colleges at the same time?

Not ethically, unless you're enrolled in both of them.


What is the meaning of joining time required?

Ø It means if a firm hire you from when you can join.Answer should be: Joining would be as per requirement.


What are some quotations of udarsha45?

''life is just a game'' - udarsha45 "The greatest miracle's of all his faith" - udarsha45 "we should behave to our friends, as we wish our friends to behave to us." - udarsha45 "There comes a time when even gods must die." - udarsha45


What should I know before purchasing time billing software?

Before purchasing time billing software, you should consider the cost and scale of the software. You can read more at it www.complete-time-tracking.com/


How do the sloths behave?

All the time LAZY!!!!! LOLz


What is the other meaning of Joining Time Required?

Ø It means if a firm hire you from when you can join.Answer should be: Joining would be as per requirement.