Firms seek to maximize
A) per unit profit.
B) total revenue.
C) total profit.
D) market share.

Question

Quizplus · Accepted Answer

Firms aim to maximize their total profit, which is the difference between total revenue and total cost. Maximizing per unit profit or market share may not necessarily result in the highest total profit for the firm. Total revenue may not reflect the actual profitability of the firm as it does not deduct total costs.

Firms Seek to Maximize