If firms satisfice this means that ?
Correct answer: B. objectives such as profit are not maximized
- A. managers need to be paid enough to stop them leaving the company
- B. objectives such as profit are not maximized
- C. short-run profits are maximized
- D. long-run profits are maximized
Explanation
Satisficing means choosing an acceptable or satisfactory outcome rather than pushing an objective such as profit to its maximum possible level. It reflects bounded rationality and limited information or managerial capacity.
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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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