Discussion:Appropriateness of Economic Objectives

Discuss the appropriateness of economic objectives such as profit maximization or share-price maximization in the area of privately delivered medical care. To focus your discussion, you may take as specific examples (a) firms in the pharmaceutical industry, (b) nursing homes, (c) private hospitals. What, if any, other goals should be used to supplement economic objectives? Why? Prepare a complete statement of objectives that you would deem to be appropriate for such a business. Be as specific as you can and outline how you would resolve potential conflicts and trade-offs between various subgoals.

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