Homework Clinic

Social Science Clinic => Economics => Microeconomics => Topic started by: Darron12 on Oct 12, 2022

Title: "An objective of firms is to maximize profits." This statement
Post by: Darron12 on Oct 12, 2022

"An objective of firms is to maximize profits." This statement
◦ is an assumption used by economists to predict the behaviour of firms.
◦ is an unrealistic assumption, and therefore of little use to economists.
◦ is a normative statement and thus cannot be tested.
◦ has been proven by empirical testing to be always true.
◦ applies only to corporations.

Title: "An objective of firms is to maximize profits." This statement
Post by: jacquelyngibson on Oct 12, 2022

is an assumption used by economists to predict the behaviour of firms.

Title: Re:
Post by: James Ballack on Oct 24, 2022

Thank You!