Economists Normally Assume That the Goal of a Firm Is

question 140

Multiple Choice

Economists normally assume that the goal of a firm is to

• A)maximize its total revenue.
• B)maximize its profit.
• C)minimize its explicit costs.
• D)minimize its total cost.

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Definitions:

Export

Products or services shipped from one nation to another for the purpose of sale or exchange.

Comparative Advantage

The ability of an entity to produce a good or service at a lower opportunity cost than another entity, leading to more efficient trade possibilities.

Mutually Beneficial Trade

Trade that provides benefits to both parties involved, allowing them to attain a level of satisfaction or economic utility that would not be possible individually.

Specialization

Division of productive activities so that no one is self-sufficient.