"A not-for-profit organization must in fact make a profit to survive. A profit simply means that revenues cover costs. If a not-for-profit organization consistently operates at a loss, it must eventually go out of existence just as a for-profit organization will." According to the reading selection, this passage is:

essentially correct.
incorrect because the law requires not-for-profit organizations to run at a loss.
incorrect because not-for-profit organizations do not face a supply-curve-of-resources constraint.
incorrect because not-for-profit organizations do not have principal-agent problems.

The goal of survival is most likely to lead to profit maximization when the:

firm is a not-for-profit organization.
firm is a monopoly.
industry has easy entry and exit.
firm can evade government regulations

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