In managerial economics,managers are assumed to maximize:
A) current profits.
B) their take-home pay.
C) their employees' welfare.
D) the value of their firm.
E) social welfare.

Question

Quizplus · Accepted Answer

In managerial economics, managers are assumed to maximize the value of their firm. This means that they aim to increase the long-term profitability and sustainability of the company, which ultimately benefits various stakeholders including shareholders, employees, and society as a whole. Maximizing current profits or take-home pay may not necessarily lead to long-term success, and prioritizing employees' welfare or social welfare may conflict with the goal of maximizing the value of the firm.

In Managerial Economics,managers Are Assumed to Maximize