In general,microeconomic theory assumes that firms attempt to maximize the difference between
A)total revenue and accounting costs.
B)price and marginal cost.
C)total revenues and economic costs.
D)economic costs and average cost.

Question

Quizplus · Accepted Answer

Microeconomic theory generally assumes that firms attempt to maximize profit, which is the difference between total revenues and economic costs. Economic costs include both explicit costs (like wages and materials, which are accounted for in accounting costs) and implicit costs (like opportunity costs).

In General,microeconomic Theory Assumes That Firms Attempt to Maximize the Difference