It is assumed in standard economic theory that a firm makes decisions in an effort to
A)be favoured politically.
B)maximize its revenue.
C)maximize its profits.
D)have a highly diversified product.
E)become as large as possible.

Question

Quizplus · Accepted Answer

Maximizing profits is the core objective of a firm in standard economic theory. This involves making decisions that aim to increase revenue while minimizing costs. Other objectives such as political favour or diversification may be pursued as means to achieve the ultimate goal of maximizing profits.

It Is Assumed in Standard Economic Theory That a Firm