Economists assume that firms seek to maximize:
A) sales.
B) profits.
C) costs.
D) all of the above.

Name: Economists assume that firms seek to maximize: A) sales. B) profits. C) costs. D) all of the above.
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Question

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Economists generally assume that firms seek to maximize profits, which is defined as total revenue minus total costs. While firms may also want to increase sales or reduce costs, the ultimate goal is to maximize profits.

Economists Assume That Firms Seek to Maximize