(Solved): In attempting to maximize profits, corporate executives and employees must distinguish between short ...

In attempting to maximize profits, corporate executives and employees must distinguish between short-run and long-run profit maximization. What is short-run profit maximization? A company may increase its profits by continuing to sell a product even though it knows that the product is defective. A company may increase its profits by continuing to sell a product only if the product is not defective. Because of lawsuits, large settlements, and bad publicity, unethical conduct will cause profits to suffer. Even with lawsuits, large settlements, and bad publicity, unethical conduct will not cause profits to suffer because consumers understand that the cost of doing business is running the risk of lawsuits and bad publicity.