Question

Read the following statements carefully. Write True or False with a REASON

i). A profit maximizing firm is not an economic agent

ii). Output of a firm is not a macrovariable​

Answer 1

Answer:

True

True

are the answers

Answer 2

Answer:

Along with the question both the given statements are true and reasons of their trueness is under mentioned.

Explanation:

Within an economy, there are three main groups of agents that are producers, Consumers, Government. So as you can see that firm is not here so a profit maximizing firm is not an economic agent. Thus output of a firm is not macrovariable this is because national output is an aggregate of all outputs produced within an economy during a year. Hence, it is a macroeconomic variable.

A firm enlarges dividend by utilizing where slight earnings alike slight price. This is specified beneath neoclassical thesis.

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