Economists normally assume that the goal of a firm is to i) sell as much of its product as possible.
Ii) set the price of the product as high as possible.
Iii) maximize profit.

Question

Quizplus · Accepted Answer

While selling as much of its product as possible and setting the price of the product as high as possible may be important for a firm's success, economists generally agree that the ultimate goal of a firm is to maximize profit. Maximizing profit ensures a firm's long-term survival and success, while the other two goals may not necessarily lead to that outcome. Therefore, choice C) iii) only is the best answer.

Economists Normally Assume That the Goal of a Firm Is