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JAMB Economics 1988 Question 11

Question 11

Theory of Production

The assumption of profit maximization implies that profit

  1. A.is the most important consideration of the firm
  2. B.is the sole consideration of the firm
  3. C.assumes an insatiable proportion in the instinct of management
  4. D.is made in order to break-even.
Show the answer and explanation

Answer: A (is the most important consideration of the firm)

Explanation

Assuming firms maximise profit means profit is taken as their main goal, not that nothing else matters.