Economists Normally Assume That the Goal of a Firm Is

question 140

Multiple Choice

Economists normally assume that the goal of a firm is to

• A)maximize its total revenue.
• B)maximize its profit.
• C)minimize its explicit costs.
• D)minimize its total cost.

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Definitions:

Surplus Revenue

Excess income over expenditures generated by an organization, government, or company.

Government's Permission

Authorization from a governmental authority for an individual or entity to perform certain actions or operations.

Corporation

A legal entity that is separate and distinct from its owners, who are shareholders; it has rights and liabilities independent of them and can enter into contracts, sue, and be sued.

Intrastate Business

Business activities that are conducted within the same state and are not involved in trade or commerce across state borders.