Evaluate the consequences for the price and output of a firm if it changes its objective from profit maximisation to sales maximisation as a response to the principal-agent problem. Section C Answer one question. EITHER

Economics

IGCSE&ALevel

CAIE

Exam No：9708_w24_qp_41. Year：2024 Question No：3

Answer:

7.7.5 principal–agent problem arising from differing objectives of shareholders/owners and managers

7.8.2.1 survival

7.8.2.2 profit satisficing

7.8.2.3 sales maximisation

7.8.2.4 revenue maximisation

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