What if entrepreneurs lack the insight and information to maximize profit? And what if some entrepreneurs...
What if entrepreneurs lack the insight and information to maximize profit? And what if some entrepreneurs are not motivated by the desire to maximize profit? Discuss the implications of discarding the profit maximization assumption for the effectiveness and efficiency of the market system
Homework Answers
In modern theory of economics, Profit maximization might not be objective of entrepreneurs. Firms are motivated by the varied objectives such as:
- Sales maximization.
- Growth maximization.
- Minimum profit maximization.
- Capturing larger share of market.
Aforementioned might be objectives of new entrepreneurs but firm might overproduce and it might suffer loss. But short term objectives might not be profit maximization but over the long run, all firms seek to maximize the profit else firm can not stay in market.
Profit is maximized where MR = MC
But efficiency is not maximized where MR = MC
Efficient is maximized where P = MC. Hence, if firm is not maximizing its profit, it might maximize efficiency. But it would depends whether firm is operating in monopoly set up or competitive set up.
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What is the IRR and NPV? (please provide your workings)
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please answer question 3. Please do take some updated
information about Sears regarding their possible Bankruptcy and
could the data be a tangible asset used for liquidation. Answr
should be at least 2 paragraph.
The shrinkage data, combined with sale and purchase data, has expanded the organization 2009, Sears decided to begin an initiativ closer to its customers. They wanted to achieve objective by implementing Big Data technol However, their IT capabilities were not up to the It is clear...
Using Table 11-1 on page 306, what specific constraints
on corporate entrepreneurship would you identify for
Apple?
What other potential limitations on corporate
innovation could Apple experience? Why?
Discuss the ethical dilemma of rogue middle managers as
it could apply to Apple.
Is Apple Its Own Obstacle? Innovation is one thing, but when a company has innovation with no strategy to define a market, take the lead in that market, and profit from that position, it will most likely find...
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