Why Assume That Firms Maximize Profit, When It Is Easy

question 8

Essay

Why assume that firms maximize profit, when it is easy to find companies that pursue other goals such as saving rain forests (Ben and Jerry's) and sponsoring Mister Rogers (Sears)?

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Definitions:

Burst Forth

To suddenly break out or emerge with force, often used metaphorically to describe the sudden appearance of something.

Prefix

A word, letter, or number placed before another to adjust or qualify its meaning.

Between

Used to indicate placement or occurrence in the space separating two points, objects, or intervals.

Afferent

Describes nerves or pathways that carry sensory signals from the peripheral organs toward the central nervous system.