Firms that engage in satisficing behavior are likely to be ?
Correct answer: A. Like other firms in their industry.
- A. Like other firms in their industry.
- B. growth maximisers.
- C. leading firms in their industry
- D. unlike other firms in their industry
Explanation
Satisficing firms seek an acceptable level of performance rather than the theoretical optimum, so their behaviour is generally similar to that of other firms facing the same industry conditions. Growth maximisers and industry leaders are not implied by satisficing.
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Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
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