Consider a firm in the long run that is trying to maximize its profits.It should
A)minimize the cost of producing whatever level of output it chooses.
B)charge the lowest price possible given the minimum possible cost.
C)maximize the marginal product of all factors of production.
D)charge the highest price.
E)select the most technically efficient method of production regardless of the level of production.

Question

Quizplus · Accepted Answer

In the long run, a firm can adjust its production level, including the amount of inputs used. Thus, to maximize profits, the firm should strive to produce at the level where its marginal cost equals its marginal revenue. In order to produce this level of output, the firm should minimize its cost of production. Therefore, choice A is the best option.

Consider a Firm in the Long Run That Is Trying