The primary goal of a business firm is to: A) increase its production

The correct answer is E (maximize profit). Profit maximization refers to how a company determines the prices, output, and input levels that lead to increased profits. Various ways of maximizing profits include outsourcing smartly, increasing productivity, using self-storage creatively, and developing a better pricing strategy, among others. Besides, profit maximization plays a significant role in the business firm since it leads to higher revenues used to expand the business. However, various disadvantages of profit maximization include stress on efficiency, the ambiguity of the concept of profit, and the separation of ownership from control.