The Goal of the Firm Should Be

question 58

Multiple Choice

The goal of the firm should be:

• A)maximization of profits.
• B)maximization of shareholder wealth.
• C)maximization of consumer satisfaction.
• D)maximization of sales.

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Definitions:

Marginal Efficiency

Marginal efficiency refers to the rate of return or profit expected from an additional unit of investment.

Interest Rate

The levy, depicted as a percentage of the base amount, that a lender places on a borrower for asset usage.

Marginal Efficiency

The expected rate of return on an additional unit of capital or investment.

Interest Rate

The proportion of a total amount of money that is charged for borrowing it, frequently presented as a yearly rate.