The paramount goal of a firm is to
A) maximize profit.
B) maximize sales.
C) maximize total revenue.
D) minimize costs.
E) force its competitors into bankruptcy.

Question

Quizplus · Accepted Answer

The paramount goal of a firm is to maximize profit, which is the difference between total revenue and total cost. Maximizing sales or total revenue may not necessarily lead to maximizing profits, and minimizing costs may not take into account the potential benefits of investing in certain areas that could lead to increased profits. Forcing competitors into bankruptcy is not a viable or ethical goal for a firm.

The Paramount Goal of a Firm Is to