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10. The traditional theory of the firm assumes that firms are short-run profit maximisers. An alternative assumption is that firms seek to maximise long-run profits.
10. The traditional theory of the firm assumes that firms are short-run profit maximisers. An alternative assumption is that firms seek to maximise long-run profits. In what way might each of the following lead to smaller short-run profits but larger long-run profits? (a) A large-scale advertising campaign. (b) Opening up a new production line. . . . ... (c) Investing in research and development. ............. . . . .................. . . . . .... (d) Launching a takeover bid for a rival company. . . . ... (e) Installing expensive filter equipment to reduce atmospheric pollution from the factory's chimneys
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