1, One of the most widely employed hypotheses in managerial economics is that business firms will be operated in a way that leads to profit maxmization. What other, alternative goals does our textbook suggest a business firm might pursue, and what reasons would support focusing on profit maximization as the major goal after all?

2, The approach of managerial economics to problem-solving can be thought of as involving four basic steps. Name these steps. Also, how does the time period under consideration affect the nature of the problem-solving process?