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:

Amplitude

The height or strength of a wave signal, often used in reference to sound or electromagnetic waves.

Panache

Distinctive and flamboyant flair or style.

Relative Size

A monocular cue for perception that allows us to determine how close objects are to an object of known size.

Texture Gradient

A depth cue in perception, referring to the way texture becomes denser and finer as it moves into the distance, helping the eye perceive depth.