8. A fundamental criticism of the traditional theory of the firm is that the decision makers in the firm may not even aim to maximise profits in the first place. On which ONE of the following is this criticism based? A. Many shareholders do not want to maximise profits. B. Owners of firms are not 'rational'. C. Shareholders are not the decision makers and have different interests from them. D. Managers prefer to maximise profits because this is usually in their own interest. E. Shareholders are really utility maximisers.

8. A fundamental criticism of the traditional theory of the firm is that the decision makers in the firm may not even aim to maximise profits in the first place. On which ONE of the following is this criticism based? A. Many shareholders do not want to maximise profits. B. Owners of firms are not 'rational'. C. Shareholders are not the decision makers and have different interests from them. D. Managers prefer to maximise profits because this is usually in their own interest. E. Shareholders are really utility maximisers.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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