Q8 The theory of the firm is based on the following two key assumptions. a. Firms seek to maximise profits and the firm is a single, consistent decision-making unit. b. Firms seek to maximise revenues and to maximise undistributed profits. c. Firms seek to maximise profit and to distribute the maximum value in dividends. d. Each firm has a highly diversified product and this leads to profit maximisation. e. Firms seek to become as large as possible and they seek to maximise total revenue.

Jared values his entrepreneurial skill at $10,000 annually to run a similar type if business if he had not elected to open his own restaurant. The table summarizes his operations for the past year. Total sales revenue $590,000 Employee wages $120,000 Materials $350,000 Interest on loan $5,000 Utilities $10,000 Rent $25,000 Total explicit costs $510,000 6. What is Jared's accounting profit? 7. Find Jared's total implicit costs. 8. What was Jared's economic profit last year?

Fill in the blanks using information in the following table:       Output per day Price ($) Total Costs ($) 0 80 40 1 75 45 2 70 48 3 65 56 4 60 66 5 55 88 6 50 143 7 45 223 8 40 423 The amount of total profits is maximized when the firm produces _ units of output. At that output level, marginal revenue is $_, average revenue is $_, and the amount of profits is $_.

3, Profit maximization may not be the goal of a business firm. What other goals might a business organization pursue and why? Briefly       for managerial economics class

State one potential positive consequence and one potential negative consequence of MOORE'S LAW for a BUSINESS.  Explain CLEARLY how these BUSINESS consequences follow from MOORE'S LAW.