A firm may be unable to maximise profits because it:
A) does not know its MC and MR
B) has too much information
C) has too little information
D) A and C

Question

Quizplus · Accepted Answer

A firm may be unable to maximize profits if it does not know its marginal cost (MC) and marginal revenue (MR), as these are crucial for determining the profit-maximizing output level. Additionally, having too little information can prevent the firm from making informed decisions to maximize profits.

A Firm May Be Unable to Maximise Profits Because It