The firm's over-riding objective is to
A) earn a normal profit.
B) maximize normal profit.
C) maximize economic profit.
D) maximize total revenue.
E) avoid an economic loss.

Question

Quizplus · Accepted Answer

The objective that goes beyond simply earning a normal profit and aims to maximize economic profit is typically the most ambitious goal for firms. This involves taking into account not just explicit costs but also implicit costs like opportunity costs to determine the most profitable course of action.

The Firm's Over-Riding Objective Is to