In reality, firms may seek to maximize
A)sales.
B)profits.
C)market share.
D)All of the above can be correct, depending upon management, owners, and other factors.

Question

Quizplus · Accepted Answer

Firms have different objectives and priorities depending on their management, owners, industry, and other factors. For example, a startup may prioritize market share over profits as it seeks to establish a presence and gain new customers, while a mature firm may prioritize profits and maximizing shareholder value. Some firms may prioritize sales or revenue growth to attract investors or achieve economies of scale. Therefore, there is no one-size-fits-all answer to what firms seek to maximize, and all of the options presented - sales, profits, and market share - can be correct depending on the context.

In Reality, Firms May Seek to Maximize