Which of the following is true about profit maximization? a. It is something that all firms...
Question:
Which of the following is true about profit maximization?
a. It is something that all firms actually do.
b. It is something which economists believe that all firms actually do.
c. It is what economists believe is the most common aim of firms.
d. It means that no firms ever make losses.
Profit
The difference between the benefits a firm obtain from its operations and its operation costs is known as profit or net benefit. Profit reaches a maximum point when the marginal benefit is equal to the marginal cost.
Answer and Explanation: 1
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- The correct answer is: c. It is what economists believe is the most common aim of firms.
Economists believe that the most common goal of firms is to...
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Profit Maximization Definition, Formula & Theory
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Chapter 24 / Lesson 6
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Learn the profit maximization definition, its importance, and explore the profit maximization theory. See how to calculate profit maximization with examples.
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