What is the theory of the firm

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I. DISSUSSION. Explain the following comprehensively. 1.   What is the theory of the firm? How does the theory of the firm provide an integrated framework for the analysis of managerial decision making across the functional areas of business?2.   According to Milton Friedman, “Business has only one social responsibility – to make profits (as long as it stays within the legal and moral rules of the game established by society). Few trends could so thoroughly undermine the very foundations of our society as the acceptance by corporate officials of a social responsibility other than to make as much money for their stockholders as possible.” Explain why you agree or disagree with such a statement. 3.   Apply the decision-making model developed in this course to your decision to attend graduate school. II.       PROBLEM. Solve the following. Show all possible computation. 1.    Given the following total-revenue and total-cost functions of a firm:TR = 22Q – 0.5Q2TC =? Q3 – 8.5Q2 + 50Q + 90 Determine:A.  The level of output at which the firm maximizes its total profitB.  The maximum profit that the firm could earn. 2.    For the following total-profit function of a firm:? = 144X – 3X2- XY – 2Y2 + 120Y – 35 Determine:A.  The level of output of each commodity at which the firm maximizes its total profitB.  The value of the maximum amount of the total profit of the firm

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