Holding revenues constant, cost minimization by firms is equivalent to
A) sales maximization.
B) price optimization.
C) profit maximization.
D) quantity minimization.

Question

Quizplus · Accepted Answer

Cost minimization by firms while holding revenues constant is equivalent to profit maximization. This is because when revenues are held constant, the only way to increase profits is by minimizing costs. Therefore, minimizing costs is the same as maximizing profits.

Holding Revenues Constant, Cost Minimization by Firms Is Equivalent to