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Difference between corporate profit maximization and maximization of shareholder wealth?
Ans) Sure, profit maximization relates to profits *only* while shareholder wealth also includes total company equity, debt ratios and any of 15 other financial performance calculates ratios. Management could focus on profit maximization over a longer period of time, say, 40 years (Toyota), Whereas the shareholder would rather see stock values and corporate total value enhance immediately (get in and get out) (90% of American manufacturers). If management focused on short-term profit maximization, say at the cost of long-term sales revenues, then shareholder wealth (stock price) could actually reduce because of the loss of market share.
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what is deadweight loss calculation?
A firm supplied 3000 pens at the rate of Rs 10. Next month, due to a rise of in the price to 22 rs per pen the supply of the firm increases to 5000 pens. Find the elasticity of sup
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A firm can produce steel with or without a filter on its smokestack. If it produces without a filter, the external costs on the community are $500,000 per year. If it produces with
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