Suppose the Utility Function for a Firm Manager Is U

question 76

Multiple Choice

Suppose the utility function for a firm manager is U =  + bQ,where Q is output, is profit,and b is a positive constant.How would the firm's output compare with what it would be if the manager's objective was to maximize profit?

• A) It would be greater than the profit-maximizing output.
• B) It would be less than the profit-maximizing output.
• C) It would be the same as the profit-maximizing output.
• D) None of the preceding statements is correct.

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Definitions:

Anterior Pituitary

The front part of the pituitary gland, producing and releasing hormones that control growth, reproduction, and other functions.

Pituitary Hormone

Hormones secreted by the pituitary gland, which regulate a wide range of bodily functions, including growth, metabolism, and reproduction.

Adrenocorticotropic Hormone

A hormone produced in the anterior pituitary gland that stimulates the production of cortisol by the adrenal cortex.

Growth Hormone

Anterior pituitary hormone that regulates growth and metabolism.