Economists assume that the goal of the firm is to maximize

Question

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Maximize total profits is the common goal of the firm according to economic theories. Profit is defined as the difference between total revenue and total costs, so by maximizing profits, the firm is also indirectly maximizing revenue and minimizing costs. Maximizing profits generally leads to the most efficient allocation of resources and provides the greatest benefits to both the firm and society as a whole.

Economists Assume That the Goal of the Firm Is to Maximize