The Assumption That Firms Attempt to Maximize Profits Will Yield

question 20

True/False

The assumption that firms attempt to maximize profits will yield good predictions even if firms sometimes pursue other goals.

---

Definitions:

Merchantability

An implied warranty that goods for sale are reasonably fit for the general purpose for which they are sold.

Implied Warranty

A legal assumption that the goods sold are fit for their intended purpose, even if not explicitly promised by the seller.

Express Warranty

A written or verbal promise made by a seller to a buyer, guaranteeing the quality or functionality of a product or service.

Merchantability

A guarantee that a product will meet reasonable expectations of quality and usability for which it was sold.