In our analysis, a firm answering the "how" question in choosing inputs is assumed to:
A)minimize profits.
B)minimize production costs.
C)maximize profits.
D)minimize average total costs.
E)minimize fixed costs.

Question

Quizplus · Accepted Answer

When a firm is answering the "how" question in choosing inputs, it is assumed to be minimizing production costs. This is because, in economic theory, firms aim to produce goods or services at the lowest possible cost to maximize their profits, not by minimizing profits, average total costs, or fixed costs specifically, but by efficiently managing the overall costs of production inputs.

In Our Analysis, a Firm Answering the "How" Question in Choosing