Analyzing a Corporate Decision

A small, family-owned bakery and a large, publicly-traded corporation both decide to increase the wages for their employees. Which statement best distinguishes the decision-making process in these two types of firms?

Identifying the Decision-Maker

Owner vs. Manager Objectives

While economic models often refer to 'the firm' as a single decision-maker, in practice, authority is distributed. Match each business decision to the agent or group most likely responsible for making it in a typical large corporation.