5 Questions
What is the main goal or objective of a firm?
Maximize profit and minimize the cost
How is economic profit calculated?
Total revenue minus explicit and implicit cost
What is the definition of a firm?
An independent unit producing goods and services for sale
In perfect competition, at which output does the firm maximize profits?
ON output
What is the total approach used to determine the equilibrium of a firm?
The simplest way
Test your knowledge on the definition of a firm and its objectives, including maximizing profit and minimizing costs. Explore concepts related to economic profit and accounting profit.
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