Which of the following statements is TRUE? Economists normally assume that the goal of the firm is to:
I. sell as much of their product as possible.
II. set the price of their product as high as possible.
III. maximize profit.
A) I and II only
B) II and III only
C) I and III only
D) III only

Question

Quizplus · Accepted Answer

Economists typically assume that the goal of the firm is to maximize profit. While selling as much of their product as possible and setting a high price may be strategies to achieve this goal, they are not inherently the goal itself.

Which of the Following Statements Is TRUE? Economists Normally Assume