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.

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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 1 year ago

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