In making a short-run profit-maximizing production decision, the firm must consider both fixed and variable cost.

Name: In making a short-run profit-maximizing production decision, the firm must consider both fixed and variable cost.
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In the short run, a firm makes profit-maximizing production decisions based on variable costs, as fixed costs cannot be changed and are therefore not relevant to the decision of how much to produce.

In Making a Short-Run Profit-Maximizing Production Decision, the Firm Must