To an economist,maximizing profit is:
A) maximizing the value of the firm.
B) maximizing the current year's profits.
C) minimizing the permanent total costs.
D) minimizing the future risks.

Question

Quizplus · Accepted Answer

Maximizing profit means maximizing the value of the firm, taking into account both current and future profits. This involves making decisions that balance short-term gains with long-term sustainability and growth, which ultimately leads to the greatest return for shareholders. Maximizing current year's profits (B) may involve sacrificing long-term gains, while minimizing permanent total costs (C) may not necessarily lead to maximal profit. Minimizing future risks (D) is important, but does not directly relate to maximizing profit.

To an Economist,maximizing Profit Is