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

Question

Quizplus · Accepted Answer

By minimizing the cost of production while still producing the desired level of output, the firm can maximize its profits in the long run. This means the firm should strive for cost efficiency in its production methods and input use, while still maintaining quality and meeting customer demand.

A Firm Trying to Maximize Its Profits in the Long