"An Objective of Firms Is to Maximize Profits

question 68

Multiple Choice

"An objective of firms is to maximize profits." This statement

• A)is a normative statement and thus cannot be tested.
• B)applies only to corporations.
• C)is an assumption used by economists to predict the behaviour of firms.
• D)is an unrealistic assumption,and therefore of little use to economists.
• E)has been proven by empirical testing to be always true.

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Definitions:

Temperature

A measure of the warmth or coldness of an environment or material, influencing geological processes.

Shearing Zones

Regions of the Earth's crust where rocks are subject to forces causing them to slide past one another, often associated with fault lines.

Different Ages

Refers to the variation in chronological periods or times at which different entities existed or events occurred.

Slope Failure

This term refers to the sudden downfall or movement of a portion of a slope caused by the loss of its stability, often induced by factors like water infiltration, overloading, or seismic activity.