When a firm seeks to minimize costs of producing a given level of output,it does NOT need to know
A)the cost of the factors of production it uses.
B)its production function.
C)how its costs change as its production methods change.
D)the available alternative methods of production.
E)the level of output that maximizes its profits.

Question

Quizplus · Accepted Answer

Knowing the level of output that maximizes profits is important for profit maximization, but not necessarily for minimizing costs of producing a given level of output. The other options, including knowledge of factor costs, production function, cost changes with production methods, and available alternative methods of production, are all crucial in determining how to minimize costs.

When a Firm Seeks to Minimize Costs of Producing a Given