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.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter19: The Basic Tools Of Finance

Section: Chapter Questions

Problem 7PA

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