The following are economic principles for managers EXCEPT:
A) the role of manager is to make decisions
B) the anticipated objective of management is to increase the firm's value
C) the firm's sales revenue depends on demand for its product
D) the firm must maximize cost for each level of output
E) successful firms deal rationally and ethically with laws and regulations

Question

Quizplus · Accepted Answer

The economic principle that the firm must maximize cost for each level of output is incorrect. The correct principle should be that the firm must minimize cost for each level of output to maximize profits.

The Following Are Economic Principles for Managers EXCEPT