In economics we assume that the goal of a firm is to
A. maximize total sales.
B. maximize economic profits.
C. maximize costs.
D. maximize revenue.
Answer: B
You might also like to view...
Tying arrangements are always held to be illegal under U.S. antitrust law
Indicate whether the statement is true or false
The free rider problem occurs because:
a. it is easy to exclude others from consuming a good. b. consumption is rivalrous, so the consumption of a product by one individual diminishes the amount available for others. c. exclusion is costly or impossible, so a consumer or producer can use a good without having to pay for it. d. external costs are imposed on others not directly involved in the transaction. e. individuals are not required to pay for those goods which do not yield any utility to them.
Contracts reduce the level of specialization in an economy
a. True b. False
Suppose that in Germany total annual output is worth $600 million and people work 40 million hours. In France total annual output is worth $700 million and people work 50 million hours. In which country do people enjoy a higher standard of living?