Firms have the option of maximizing sales revenue or maximizing profits.If a firm chooses to maximize sales, then it will produce
A)more output and charge a lower price.
B)the same output and charge a lower price.
C)less output and charge a higher price.
D)less output and charge a lower price.

Question

Quizplus · Accepted Answer

When a firm chooses to maximize sales revenue, it aims to sell as much as possible, which requires producing more output. In order to sell more, the firm may have to lower the price in order to attract more customers. Therefore, the firm will produce more output and charge a lower price.

Firms Have the Option of Maximizing Sales Revenue or Maximizing