Seeing is believing!
Before you order, simply sign up for a free user account and in seconds you'll be experiencing the best in CFA exam preparation.
Basic Question 1 of 10
Perfectly competitive firms ______
B. maximize total sales.
C. minimize total costs.
D. maximize profits.
A. maximize market share.
B. maximize total sales.
C. minimize total costs.
D. maximize profits.
User Contributed Comments 6
| User | Comment |
|---|---|
| DannyZhou | So do all other types of firms? |
| EMerkert | Monopolistic firms would first seek to maximize market share by undercutting competitors, once this is acheived then they can maximize profits by raising prices without much competition |
| udhay | Why not B,In perfect competition firms can make max profit only thru max sales |
| Thescholar | Maximising sales may lead to increased costs which may therefore not maximise profit |
| vatsal92 | Profit is the sole motive of perfect competition firms. |
| fzhou | MR = MC = ATC_min is profit maximizing rule. |
I am using your study notes and I know of at least 5 other friends of mine who used it and passed the exam last Dec. Keep up your great work!
Barnes
Learning Outcome Statements
describe characteristics of perfect competition, monopolistic competition, oligopoly, and pure monopoly
CFA® 2025 Level I Curriculum, Volume 1, Module 1.