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    profit motive

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    Explain with one example how the profit motive helps firms to make efficient managerial decisions. Identify the managerial problem, the rule to maximize profit, and apply that rule to the concrete situation.

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    Managers want to maximize profits which means they want to produce at a point where MC is equal to price (in competitive industries). This implies:

    1. That when they are making ...

    Solution Summary

    This solution clearly articulates profit motives.