Economists Normally Assume That the Goal of a Firm Is

question 66

Multiple Choice

Economists normally assume that the goal of a firm is to earn (i)
Profits as large as possible, even if it means reducing output.
(ii)
Profits as large as possible, even if it means incurring a higher total cost.
(iii)
Revenues as large as possible, even if it reduces profits.

• A)(i) and (ii) only
• B)(i) and (iii) only
• C)(ii) and (iii) only
• D)(i), (ii), and (iii)

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Definitions:

Systematic

An approach characterized by step-by-step procedures aimed at ensuring thoroughness and accuracy in achieving a specific goal or solving a problem.

Heuristics

Mental shortcuts or rules of thumb that simplify decision making, often used when facing complex problems or incomplete information.

Algorithms

Step-by-step procedures or formulas for solving a problem or completing a task.

Dwellings

Places where people live, such as houses, apartments, and other residential structures.