QUESTION IMAGE
Question
economists normally assume that the goal of a firm is to:
maximize total revenue
maximize profit
minimize explicit costs
minimize total cost
Brief Explanations
In economics, a fundamental assumption about firms is that their primary goal is to maximize profit. Maximizing total revenue does not account for costs, minimizing explicit costs or total cost does not consider revenue generation. Profit (calculated as total revenue minus total cost) is the key metric firms aim to maximize.
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B. maximize profit