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Business

Economics

te crit

Microeconomics: Principles & Policy

14th Edition

ISBN:9781337794992

Author:William J. Baumol, Alan S. Blinder, John L. Solow

Publisher:William J. Baumol, Alan S. Blinder, John L. Solow

Chapter12: Monopoly

Section: Chapter Questions

Problem 6DQ

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Question

. Economic responsibility, carried to the extreme, is called the profit-maximizing view. The view argues that the corporation should be operated on a profit-oriented basis, with its sole mission to increase its profits so long as it stays within the rules of the game.

Is the purely profit-maximizing view considered an adequate criterion of performance?

Can it lead companies into trouble? Use examples

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