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:

Abstract Propositions

Abstract propositions are theoretical statements or ideas that are not tied to concrete or specific instances, often used in logic and philosophy to explore concepts and arguments.

Sociological Research

The systematic study of social behavior, institutions, and functions, using various methods of empirical investigation and critical analysis.

Concrete Patterns

Observable, tangible forms in which social norms, practices, or structures manifest, often providing empirical evidence for sociological theories.

Concrete Experience

A Kolb's Experiential Learning Theory component, involving learning through specific experiences and reflecting on those experiences.