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Chapter 4 Unit 3 questions

For Chapter 4 Unit 3 questions Click Price-output determination under different market forms
QUESTION
Q13) It is assumed in economic theory that

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Solution:
Among the options given, only option (b) is correct. Economic theory assumes that the ultimate goal of a firm is to maximize its profits. This assumption is based on the idea that firms are profit-seeking entities, and the owners or managers who run the firm make decisions that will maximize the firm's profits.
Correct option is (b)