The Goal of the Business Firm Is Maximization of ____

question 130

Multiple Choice

The goal of the business firm is maximization of ____, and the goal of the consumer is maximization of ____.

• A)total sales; income
• B)total profit; utility
• C)total output; utility
• D)total sales; utility

Understand the basic principles of the law of demand.

Distinguish between a change in demand and a change in the quantity demanded.

Identify factors that cause shifts in demand curves.

Analyze the effect of price changes on the demand for goods and services.

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Definitions:

Marginal Cost

The escalation in expenses resulting from the creation of one additional unit of a product or service.

Output

The quantity of goods or services produced within a certain period by a firm, industry, or country.

Variable Cost

Fees that directly alter according to the scale of production or output.

Marginal Cost

The amplification in entirety of cost following the production of an additional unit of a product or service.