Category: Alternative Theories Of The Firm

A. To increase competition
B. To reduce uncertainty
C. To achieve faster growth
D. To achieve economies of scale

A. profit myopia
B. principal-agent problem.
C. merger mania.
D. moral hazard

A. sole proprietors
B. partnerships
C. public limited companies
D. monopolies

A. contestable
B. perfectly competitive
C. oligopolistic
D. export-oriented

A. firms do not know how to maximize profits.
B. firms have other aims
C. it does not explain monopolistic competition
D. Both the first and second option

A. respect of other managers.
B. maximum profits.
C. job security
D. a large number of subordinates

A. horizontal
B. vertical
C. homogeneous
D. conglomerate

A. does not know its MC and MR
B. has too much information
C. has too little information
D. The first and third option

A. Williamson’s
B. classical economic
C. Marxist
D. monetarist

A. AR minus AC is maximized
B. MC = MR
C. quantity sold is maximized
D. sales revenue is maximized