An economist observes that a pharmaceutical company is sponsoring a diabetes clinic and providing free medications. She concludes that the pharmaceutical company is reducing short-term profits for the possibility of higher long-term profits. This economist is most likely a(n):

Question

Quizplus · Accepted Answer

Traditional economists often focus on the idea that companies make decisions to maximize profits, whether in the short-term or long-term. The economist's conclusion aligns with this perspective, as it suggests the company is investing in long-term profitability.

An Economist Observes That a Pharmaceutical Company Is Sponsoring a Diabetes