When we focus on the firm as a supplier of a good or a service,we assume that the firm is a profit maximizer.When we focus on the firm as a demander of labour,what do we assume the firm's objective to be

Question

Quizplus · Accepted Answer

When we focus on the firm as a demander of labor, we assume that the firm's objective is to maximize profit. The firm seeks to hire the optimal number of workers to produce the goods or services that will generate the maximum profit. This means that the firm will balance the cost of labor with the revenue generated from the goods or services produced by the labor. Thus, choice D, maximize profit, is the correct answer.

When We Focus on the Firm as a Supplier of a Good