The firm expands its capital up to the point that
A)long-run average costs are minimized.
B)fixed costs are minimized.
C)average variable costs are minimized.
D)profits are maximized.
E)average total costs are minimized.

Question

Quizplus · Accepted Answer

A firm expands its capital to maximize profits, which involves balancing costs and revenues to achieve the highest possible profit level.

The Firm Expands Its Capital Up to the Point That