Which of the following statements is true? The study of managerial economics onl

Question

Which of the following statements is true?

The study of managerial economics only applies to nonprofit firms, and the principles are NOT applicable to firms that seek to maximize profit.

The goal of every (for-profit) firm should be to maximize the profit in the current year, without consideration for any profit or losses in the succeeding future years.

Strategy focus on the determination of the basic long-term purposes, goals and objectives of a firm, including the kind of company that the firm should be.

d.         Strategy does NOT include the determination of the kind company that a firm should be, or the specifying the guidelines for coordinating the activities within a changing environment.

e.         Successful firms do not segment their markets; they strive to minimize any outsourcing of any aspect of production and use technology to determine their strategies.

Explanation / Answer

Correct option is (c).

A firm's business strategy focuses on the long run purposes, objectives and goals of the organization, which includes and defines the scope of activity of the firm, i.e. the kind of company that the firm should be.

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