Economists assume that the goal of the firm is to maximize total
A)revenue.
B)profits.
C)costs.
D)satisfaction.

Question

Quizplus · Accepted Answer

The ultimate goal of a firm is to maximize profits, which is the difference between total revenue and total costs. Maximizing revenue or minimizing costs may contribute to this goal, but they are not the ultimate objective. Satisfaction is not typically a measurable goal in economics, and is not a primary factor in firm decision-making.

Economists Assume That the Goal of the Firm Is to Maximize