The Reason Economists Assume That Firms Try to Maximize Economic

question 16

Multiple Choice

The reason economists assume that firms try to maximize economic profit is

• A)over time, firms that don't earn profits will have difficulty securing financing to survive
• B)firms in the real world always maximize profit
• C)profit is easier to calculate than revenues
• D)if a firm fails to earn a profit in its first year, it will go out of business
• E)profit maximization is easier for firms than revenue maximization

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Definitions:

Courteous

Showing consideration, respect, and politeness in one's behavior or speech towards others.

Screening

The process of evaluating or analyzing something to determine its suitability or to filter out unwanted or irrelevant elements.

Assistants

Individuals or tools that provide support and help in various tasks or activities.

Adaptation

The process of adjusting or modifying something to suit a new environment, purpose, or conditions.