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A Profit-Maximizing Firm Would

Question 97

Multiple Choice

A profit-maximizing firm would


A) consider opportunity costs rather than accounting costs when making decisions about output.
B) expand current output if the revenues expected from doing so were less than the expected costs.
C) enlarge its current plant size if present depreciation costs were less than average variable costs.
D) increase output in the next period if accounting profits during the previous period were positive.

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