Economists normally assume that the goal of a firm is to (i)
Sell as much of its product as possible.(ii)
Set the price of the product as high as possible.(iii)
Maximize profit.
A)(i) and (ii) only
B)(ii) and (iii) only
C)(iii) only
D)(i), (ii), and (iii)

Question

Quizplus · Accepted Answer

While firms may want to sell as much of their product as possible and set high prices, ultimately the goal of a firm is to maximize profit. This is because profit maximization takes into account both revenue and costs, ensuring that the firm is not just selling as much as possible or setting high prices, but also ensuring that their costs are not too high and that they are making the most money possible.

Economists Normally Assume That the Goal of a Firm Is