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
Correct Answer:
Verified
Q1: The opportunity cost of a resource
A)includes both
Q2: A young chef is considering opening his
Q3: Explicit costs are
A)not part of opportunity cost
B)the
Q4: If all my savings are invested in
Q6: If Ripco owns the building where it
Q7: John moved his office from a building
Q8: All other things constant, higher implicit cost
Q9: If a firm's economic profit is positive,
Q10: The difference between a firm's total revenue
Q11: Unlike implicit costs, explicit costs
A)reflect opportunity costs
B)include
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