Economic theory assumes that a firm’s goal is to: Multiple Choice maximize its economic profit. earn...

Economic theory assumes that a firm’s goal is to: Multiple Choice maximize its economic profit. earn an economic profit. maximize its accounting profit. earn an accounting profit.

Expert Solution

Answer: maximize its economic profit

According to traditional economic theory profit maximisation is the sole objective of business. The owners of firms must cover the costs of all resources used by the firm, maximizing economic profit, rather than accounting profit, is the objective/goal of any firm or owner.

Rahul Sunny answered 2 years ago

1.The firm’s goal is to maximize profit . Is it the only goal? If not, …...

1.The firm’s goal is to maximize profit . Is it the only goal? If not, … give examples … 2. Should the firm do EVERYTHING to REACH the profit / MAXIMIZE the profit 3. Social Corporate Responsibility. What is it ? To what extent can we afford it?

In finance theory, the goal of the firm is said to be “maximize wealth” instead of “maximize profit.”

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The neoclassical economic theory basically assumes that a free market is the best way to maximize...

The neoclassical economic theory basically assumes that a free market is the best way to maximize social welfare. Political interventions in the market in the form of the instrument proposed here generally reject representatives of this direction. Market interventions must always be justified from the perspective of neoclassical economic theory. 1. What arguments can be used to justify market interventions from this perspective? 2. To what extent does this apply to the above political measure?

Unlike LPC theory, path-goal theory assumes that

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If Van's goal is to maximize his economic profit, he (should or should not) stay in the boat business.

2. Definition of economic costs Van lives in Chicago and runs a business that sells boats. In an average year, he receives $704,000 from selling boats. Of this sales revenue, he must pay the manufacturer a wholesale cost of $404,000; he also pays wages and utility bills totaling $286,000. He owns his showroom; if he chooses to rent it out, he will receive $3,000 in rent per year. Assume that the value of this showroom does not depreciate over the year....

The goal of setting a transfer price is to a. maximize the overall profit of the...

The goal of setting a transfer price is to a. maximize the overall profit of the organization. b. motivate managers to behave in the best interest of the firm as a whole. c. ensure that all divisions have the resources they need to operate. d. maximize the profit of the transferring division. Vogue Limited manufactures 75,000 digital cameras each year. Vogue has been producing the lenses internally. However, late last year the company received an offer to produce the 150,000...

1.How would a manager use economic theory to maximize profit price for a service or product?...

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Given the following data and assuming the goal is to maximize profit, is there a dominant...

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As a Manager, your goal is to maximize profit of your business.Assume you are in...

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According to public choice theory, a politician’s main goal is to:

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