7 Firm Organization and Market Structure
I won’t belong to any organization that would have me as a member.
—Groucho Marx
Learning Objectives
Describe how firms differ by type of ownership and objectives.
Determine the profit-maximizing output of a firm.
Explain how firms resolve conflicting objectives between owners and managers.
Discuss a firm’s profit-maximizing vertical organization.
Explain how the various market structures affect firms’ characteristics and behavior.
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