File Details
The Objectives of Firms | |
File name | The Objectives of Firms |
File Description | Risk taking was an inevitable component of dynamic production and those who took risk in business had a right to a separate reward known as "profit". According to Hawley, profit is the price paid by society for assuming business risk. A businessman would not take a risk without expecting compensation in excess of actuarial value i.e., a premium on calculable risk. The reason that expected profit must be more than actuarial risk is the assumption that risk gives rise to dis-utilities of various kinds. Therefore, assuming risk gives the entrepreneur a claim to a reward in excess of the actuarial value of the risk |
Category Name | Management Studies |
Subject Name | BUSINESS ECONOMICS |
Module Name | Theory of Firm |
Micro Category Name | Objectives of the Firm |
Level | Masters |
File Type | |
File | Login to Download |
File | Login to Download |