a manager's incentives are not perfectly aligned with the profit-maximising goals of a firm's owners, one plausible scenario is that they may have an incentive to maximise the firm's total revenue (if for example their income is proportional to revenue).  Explain why the revenue maximiser should always produce more than the profit maximiser.

Managerial Economics: A Problem Solving Approach
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ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
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 a manager's incentives are not perfectly aligned with the profit-maximising goals of a firm's owners, one plausible scenario is that they may have an incentive to maximise the firm's total revenue (if for example their income is proportional to revenue). 

  • Explain why the revenue maximiser should always produce more than the profit maximiser.   
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