Economists Generally Assume That Firms Attempt to Maximize

question 333

Multiple Choice

Economists generally assume that firms attempt to maximize

• A) total revenue.
• B) sales.
• C) marginal revenue.
• D) total economic profits.

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Definitions:

Invisible Hand Principle

A metaphor described by Adam Smith to illustrate how individuals pursuing their own self-interest can benefit society overall, as if guided by an unseen hand.

Allocation of Resources

The process of distributing available resources among various competing needs and uses to achieve desired objectives and outcomes.

Self-Interest

The action of working towards one's personal advantage, often considered a driving force behind economic decisions.

Equitable Distribution

A legal principle used in family law to fairly divide property and assets between partners during a divorce.