In reality, decisions made by firms may not always produce maximum total profit because some executives
A)are more motivated by altruism.
B)are more interested in market share than profits.
C)may push research and development to the point that profits decline.
D)All of the responses are correct.

Question

Quizplus · Accepted Answer

Firms may make decisions that sacrifice short-term profits for the sake of long-term R&D investment or to gain a greater market share. Additionally, some executives may be motivated by goals beyond simply maximizing profits, such as altruistic motives or a desire to create positive social impact. Therefore, all of the responses are possible explanations for why firms may not always maximize total profit.

In Reality, Decisions Made by Firms May Not Always Produce