Economists normally assume that the goal of a firm is to:

(i) sell as much of its product as possible.

(ii) set the price of the product as high as possible.

(iii) maximize profit.

(i) Selling as much as possible is not always a viable business model, regardless of how much it sells, a firm might not perform well if it is selling its products at a low profit margin or even at a loss.

(ii) Setting an extremely high price for a product may decrease demand and open up opportunities for competitors to enter the market selling at a lower price; an optimal equilibrium price is preferable to the highest possible price.

(iii) According to economists, this should be the main goal of a firm. Be it by reducing costs or increasing revenue, maximizing profits should be the aim of a business.

Economists normally assume that the goal of a firm is to: (i) sell as much of its product as possible. (ii) set the price of the product as high as possible. (iii) maximize profit.

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Economists normally assume that the goal of a firm is to:

(i) sell as much of its product as possible.

(ii) set the price of the product as high as possible.

(iii) maximize profit.