Economists generally assume that the firm's goal is to
A) minimize its costs.
B) maximize its profit.
C) make its market share as large as possible.
D) maximize its production.

Question

Quizplus · Accepted Answer

Maximizing profit is the most common goal of a firm in economics. While minimizing costs and maximizing production are important factors, ultimately the goal is to make as much profit as possible. Increasing market share can also be a means to achieving higher profits, but it is not the ultimate goal.

Economists Generally Assume That the Firm's Goal Is to