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The Theory of the Firm Is Based on the Following

Question 29

Multiple Choice

The theory of the firm is based on the following two key assumptions:


A) Firms seek to become as large as possible,and they seek to maximize total revenue.
B) Each firm has a highly diversified product,and this leads to profit maximization.
C) Firms seek to maximize profit,and to distribute the maximum value in dividends.
D) Firms seek to maximize profits,and the firm is a single,consistent decision-making unit.
E) Firms seek to maximize revenues,and to maximize undistributed profits.

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