The Reason Economists Assume That Firms Try to Maximize Economic

question 16

Multiple Choice

The reason economists assume that firms try to maximize economic profit is

• A)over time, firms that don't earn profits will have difficulty securing financing to survive
• B)firms in the real world always maximize profit
• C)profit is easier to calculate than revenues
• D)if a firm fails to earn a profit in its first year, it will go out of business
• E)profit maximization is easier for firms than revenue maximization

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Definitions:

Independent Variable

In an experiment, the variable that is manipulated or changed to observe its effect on the dependent variable.

Amount of Television Viewing

Measures the total time an individual dedicates to watching television over a specific period.

Independent Variable

The variable in an experiment or study that is manipulated or controlled by the researcher to observe its effect on the dependent variable.

Level of Impulsivity

A measure of how much an individual makes quick decisions without considering the consequences.