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If one were to observe the short-run behavior of a typical American business enterprise, you might fail to see the profit-maximizing behavior assumed by economists. Suggest two reasons for this.
Management
The act of coordinating and overseeing the activities of a business or organization to achieve defined objectives.
Board Of Directors
A group of individuals elected by shareholders to oversee the management and make major decisions for a corporation.
Employees
Individuals who are hired by a company to perform specific duties and tasks in exchange for compensation, contributing to the company's operations and goals.
Common Stockholders
Individuals or entities that own shares in a company's common stock, granting them voting rights and a share in the company's profits through dividends.
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