The primary operating goal of a publicly-owned firm interested in serving its stockholders should be to a. maximize the stock price per share over the long run, which is the stock’s intrinsic value. b. maximize the firm’s expected eps. c. minimize the chances of losses.

Gerda, a real estate agent, is selling a moderately priced house in a subdivision. she knows from her uncle that the factory being built half a mile from the subdivision will be manufacturing dog food, using a process that creates a very strong odor that permeates the surrounding neighborhood. a buyer, who is unaware of the type of factory under construction, makes an offer on one of the houses gerda is selling, and within a short time, the deal goes through. what does this scenario best illustrate?