Economists Assume That the Goal of a Firm Is to

question 61

Multiple Choice

Economists assume that the goal of a firm is to

• A) maximize economic profits.
• B) sell as many units as possible.
• C) maximize gross revenues.
• D) be the largest firm in its industry.

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Definitions:

Population Parameter

A numerical value that describes a characteristic of the entire population.

Confidence Level

The degree of certainty that a parameter lies within a specified range.

Confidence Interval

A set of values from sample statistics expected to cover the value of a not-yet-known population parameter.

Unbiased Estimator

A statistical estimator that is expected to equal the true parameter of the population being studied.