A firm's goal is to
A)maximize revenue.
B)maximize cost while minimizing revenue.
C)maximize profit.
D)minimize costs.
E)minimize risk.

Question

Quizplus · Accepted Answer

Maximizing profit is a common goal of firms. This means the firm is taking into account both revenue and cost in order to maximize the difference between the two. By focusing solely on revenue (A) or cost (B) the firm may not be achieving the most efficient or profitable outcome. Minimizing costs (D) and minimizing risk (E) are also important considerations for a firm, but they are not the primary goal.

A Firm's Goal Is to