Answer to Question #103346 in Microeconomics for Mohamed

Question

Discuss the Managerial utility maximization theory and assess it’s merits with respect to present day business realities.

Answer 1

According, to this theory managers take the decisions that will priorities their own utility maximazation over functions such as profits,provided the firm can genarate minimum profits to the shareholders.

its main advantage is in decision making especially in the expansion of staff and their salary increament