In Economics, Firms Are Assumed to

question 154

Multiple Choice

In economics, firms are assumed to

• A)maximize output prices.
• B)minimize output prices.
• C)maximize profits.
• D)maximize consumer surplus.
• E)maximize customer satisfaction.

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Definitions:

Replacement Cost

The current cost of replacing an asset with a new one of similar kind and quality.

LIFO

Last-In, First-Out, an inventory valuation method where the most recently produced or acquired items are the first to be expensed.

Inventory Liquidations

The process of converting a company's inventory into cash, typically at a discount, often used to meet short-term financial needs.

Income Taxes

Taxes imposed by government authorities based on the income earned by individuals and corporations.