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List the fundamental proposition for the Theory of a Firm.

      

List the fundamental proposition for the Theory of a Firm.

  

Answers


Martin
a) The firm strives towards the achievement of its goal- usually profit maximization.

b) While choosing between alternatives, the firm prefers the alternative which helps it to consistently achieve profit maximization.

c) Firm is a unit which transforms valued inputs into outputs of a higher value, given the state of technology.

d) The market conditions for a firm to operate are given.

e) The primary concern of the theory of firm is to analyze change in the prices and quantities of inputs and outputs.
marto answered the question on April 16, 2019 at 13:08


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