Economists normally assume that the goal of a firm is to earn
(i) profits as large as possible, even if it means reducing output.
(ii) profits as large as possible, even if it means incurring a higher total cost.
(iii) revenues as large as possible, even if it reduces profits.

a. (i) only
b. (Iii) only
c. (i) and (ii) only
d. (i) and (iii) only
e. (i), (ii) and (iii)

B. (iii) only

Explanation:

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

(iii) revenues as large as possible, even if it reduces profits.

The reason for economist to normally assume the goal of a firm is to earn revenues as large as possible, even if it reduces profits, is that, while achieving more profit is what can make firm to keep running, there are times when rather than maximizing the profits alone, the economist look at the long run and seeks to generate more sales or total revenue, even if it decreases the profit generated, so as to increase the firm market share relative to its competitors.

Hence, economist seeks to maximize profits, while making higher number of sales.

In short, the seek the following:

1. Growth Maximization

2. Increasing Market Share

3. Satisfying Behavior

4. Maximizing Sales or Total Revenue

manifest functions are the recognized and intended consequences of any social pattern, while latent functions are those unrecognized and unintended consequences. to analyze the manifest functions of any social institution, we have to study its contribution to the continuation of a group, community, or society.