The Reason Economists Assume That Firms Try to Maximize Economic

question 169

Multiple Choice

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

• A)firms that don't earn profits will, over time, have difficulty securing financing to survive.
• B)firms in the real world always maximize profit.
• C)profit is easier to calculate than revenue.
• 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:

Deception

The act of misleading or tricking someone by concealing or misrepresenting the truth.

Debriefed

The procedure where research participants are given full information about the purpose and procedures of the study after their participation.

Painful Stimuli

External or internal factors that cause discomfort or pain, activating the nervous system's response to potential or actual harm.

Animal Research

The use of non-human animals in scientific experiments to study biological processes, diseases, or behaviors.