Fear to take-overs will lead firms to maximize ? A. growth. B. sales revenue C. managers utilityD. profits.

The merger of a clothing firm and a software producer would be a _______ merger? A. horizontal B. verticalC. conglomerate D. homogeneous

Growth maximization is the same as ? A. sales revenue maximizationB. maximization the growth of sales revenue. C. Sales maximization D. long-run profit maximization.

A sale maximizing firm will produce where ? A. AR minus AC is maximized B. MC = MR C. quantity sold is maximizedD. sales revenue is maximized

The divorce of owner ship and control causes a problem usually referred to by economists as ? A. profit myopiaB. principal-agent problem. C. merger mania. D. moral hazard

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

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 informationD. The first and third option

The divorce of ownership and control tends to occur in ? A. sole proprietors B. partnershipsC. public limited companies D. monopolies

Public limited companies may not maximize their profits because ? A. they are afraid of encouraging takeovers.B. holders have little control over managers. C. holders want higher dividends. D. both the first and third option.

The traditional profit-maximizing theory of the firm has been criticized by some economists because ? A. firms do not know how to maximize profits. B. firms have other aims C. it does not explain monopolistic competitionD. Both the first and…