Which of the following best describes the primary goal of the firm in microeconomics?

• A. To produce as much output as possible
• B. To maximize market share at any cost
• C. To minimize costs regardless of revenue
• D. To maximize profit

Answer: (D)

Verified step by step guidance

1. Understand the concept of a firm's objective in microeconomics, which is typically centered around economic efficiency and sustainability.
2. Recognize that producing as much output as possible is not always the goal because it may lead to inefficiencies or losses if costs exceed revenues.
3. Consider that maximizing market share at any cost can be harmful if it leads to losses or unsustainable business practices.
4. Note that minimizing costs regardless of revenue ignores the importance of generating sufficient income to cover costs and earn returns.
5. Conclude that the primary goal of the firm is to maximize profit, which means achieving the greatest difference between total revenue and total cost.