Firm Behavior Quotes

Under perfect competition, in the long run no company makes an economic profit.

Roughly speaking, when you are dealing with business firms operating in a competitive system, you can assume that they're going to act rationally. Why? Because someone in a firm who buys things at $10 and sells them for $8.00 isn't going to last very long in that firm.

Firms that claim domain focus are late movers.

Under the rule of law, if the government wants to prevent firms from outsourcing and offshoring, it enacts legislation and adopts regulations to create the appropriate incentives and discourage undesirable behaviour. It does not bully or threaten particular firms or portray traumatised refugees as a security threat.

The concept of profit maximization is, in fact, meaningless.

But individuals and firms spend an enormous amount of resources acquiring information, which affects their beliefs; and actions of others too affect their beliefs.

You get more irrationality within the family and in consumer behavior than you get, say, in the behavior of firms in their purchases.

It is very likely that many firms spend more on advertising than, for their own best interests, they should.

Firms are not always willing to cut wages, even if there are people lined up outside the gates to work. So why don't they?