In general, economists assume that firms

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Economists generally assume that firms aim to maximize economic profit rather than accounting profit, sales, or revenue. Economic profit takes into account both explicit costs (such as rent, wages, and material costs) and implicit costs (such as opportunity costs of the owner's time and forgone investments). By maximizing economic profit, firms are able to effectively allocate resources in a way that maximizes overall welfare in society.

In General, Economists Assume That Firms