Neoclassical economic theory would argue that the sole purpose of a firm is to ________.

Question

Quizplus · Accepted Answer

According to neoclassical economic theory, firms are profit-maximizing entities that aim to expand their business and increase profits. This theory assumes that businesses operate in a competitive market and seek to maximize their own profits while minimizing costs. Therefore, option A is the correct answer. Option B and C are not consistent with neoclassical economic theory. Option D might be a desirable social objective for some people, but it is not the primary goal of a firm according to neoclassical economics.

Neoclassical Economic Theory Would Argue That the Sole Purpose of a Firm