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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.


What are firm objectives and constraints?

Firm objectives are the specific goals that a company aims to achieve, such as maximizing profits, increasing market share, or enhancing customer satisfaction. Constraints refer to the limitations or restrictions that a firm faces in pursuing these objectives, which can include financial resources, regulatory requirements, time limitations, and operational capabilities. Together, these factors shape a firm's strategy and decision-making processes, influencing how it allocates resources and prioritizes initiatives.


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.


When a firm is earning positive economic profit?

When a firm is earning positive economic profit, it means that its total revenue exceeds its total costs, including both explicit and implicit costs. This indicates that the firm is not only covering its operating expenses but also generating a return that exceeds what it could have earned in the next best alternative. Positive economic profit often signals that the firm has a competitive advantage or is operating efficiently in its market. Additionally, it can attract new entrants to the market, potentially leading to increased competition over time.

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 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


How should we have a firm but in friendly manner?

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


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/


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 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.


How do the sloths behave?

All the time LAZY!!!!! LOLz