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In: Economics

Indicate whether you agree or disagree with the following statement: "The goal of the firm is...

Indicate whether you agree or disagree with the following statement: "The goal of the firm is to maximize its profit." Support your position with argument, examples and research

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Ans:- Agree with the statement "goal of the firm is to maximize it's profits" because maximize the profits is considered the main object of a firm. A firms products price and it's output are related with a firms profits. So maximize it's profits is the main principles of a firm. Profit maximization denotes maximum income of a firm. For the purpose of maximizing profits firm's owners, firm's managers, firm's employees etc are working hard. Profit is the main measure of the victory of any firm(business). A firm functioning it's marginal revenue equal to marginal cost for profit maximization.

Rahul Sunny answered 2 years ago
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