Question

Economists typically assume that the owners of firms wish to

A. produce efficiently.
B. maximize sales revenues.
C. maximize profits.
D. All of the above.

Answer 1

The correct answer to the following question is option C) maximize profit .

Step-by-step explanation:

When talking about the owners of the firms, economists usually assumes that the main goal of the owners is to maximize profit. Now if this was the case of company , the answer would have been different ( like maximizing shareholders wealth or etc ) but since owners are separate from company, as a company is a separate legal entity, so it won't be wrong to say for he owners , the profit is the main aim.

Answer 2

Answer: Maximize profits

Explanation: The basic assumption an economist make is that the owners of a firm always works with the intent of maximizing their profits. As per this approach, the producers in the market determine their prices, inputs and outputs in such a way that it leads to highest profits.

Hence, from the above we can conclude that the right option is C.