The Basic Objective of a Firm Should Be To

question 85

Multiple Choice

The basic objective of a firm should be to:

• A) engage in some specific business activity that will perform a socially and economically useful function.
• B) develop an organization to carry on the business and implement its strategies.
• C) earn enough profit to survive.
• D) All of these are basic objectives of a firm.

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Definitions:

Streetlights

Streetlights are outdoor lighting fixtures placed along streets, designed to enhance visibility and safety during nighttime.

Market Failure

A situation in which the allocation of goods and services by a market is not efficient, often leading to a net social welfare loss.

Marginal Benefit

The increased happiness or advantage derived from the consumption of one more unit of a good or service.

Marginal Cost

The cost of producing one more unit of a good or service, often key to determining the optimal level of production.