Economists normally assume that the goal of a firm is to earn
(i)profits as large as possible, even if it means reducing output.
(ii)profits as large as possible, even if it means incurring a higher total cost.
(iii)revenues as large as possible, even if it reduces profits.
A)(i) and (ii) only
B)(i) and (iii) only
C)(ii) and (iii) only
D)(i), (ii), and (iii)

Question

Quizplus · Accepted Answer

Economists typically assume that firms aim to maximize profits, which may involve reducing output or incurring higher costs, but not necessarily maximizing revenues if it reduces profits.

Economists Normally Assume That the Goal of a Firm Is