Economists have not been persuaded that alternative behavioral assumptions for firms, such as sales maximization, yield superior results to the assumption of profit maximization.

Question

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Economists generally agree that the assumption of profit maximization is a fundamental and effective principle for understanding firm behavior, and alternative assumptions like sales maximization have not been widely accepted as superior in yielding better predictive or analytical results.

Economists Have Not Been Persuaded That Alternative Behavioral Assumptions for Firms