A major assumption of the economic theory is that,firms will focus on:
A)minimizing the inventory turnover ratio.
B)maximizing gains and minimizing losses.
C)providing a minimum return on investment.
D)using selective distribution strategies rather than intensive distribution strategies.

Question

Quizplus · Accepted Answer

The economic theory assumes that firms are profit-maximizers, which means they aim to generate as much profit as possible while minimizing their losses. Therefore, they will focus on maximizing gains and minimizing losses. The other options, such as minimizing inventory turnover ratio or providing a minimum return on investment, may be secondary considerations for firms under certain circumstances, but they are not the primary focus of economic theory. The last option, using selective distribution strategies rather than intensive distribution strategies, is not directly related to the assumption of profit maximization in economic theory.

A Major Assumption of the Economic Theory Is That,firms Will