The Reason Economists Assume That Firms Try to Maximize Economic

question 16

Multiple Choice

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

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

Blood Pressure

The force exerted by circulating blood upon the walls of blood vessels, often measured as an indicator of heart health.

Motor Vehicle Accident

An event involving a collision between one or more vehicles, often resulting in property damage, injuries, or fatalities.

Antidiuretic Hormone

A hormone that helps control the body's water balance by causing the kidneys to retain water.

Alarm Stage

The initial reaction of the body to stress, activating the sympathetic nervous system and the fight-or-flight response.