It is assumed in standard economic theory that a firm makes decisions in an effort to
A)become as large as possible.
B)have a highly diversified product.
C)be favoured politically.
D)maximize its revenue.
E)maximize its profits.

Question

Quizplus · Accepted Answer

Maximizing profits is the primary goal of a firm in standard economic theory, as it is assumed that firms aim to increase their financial gain and return on investment.

It Is Assumed in Standard Economic Theory That a Firm