In the resource market, firms demand resources in order to
A)maximize profit
B)maximize total revenue
C)maximize marginal revenue
D)maximize utility
E)minimize cost

Question

Quizplus · Accepted Answer

Firms in the resource market demand resources in order to maximize profit. This means they will hire the optimal amount of resources needed to produce a given level of output at the lowest possible cost, ultimately increasing their profits. Maximizing total revenue or marginal revenue may not necessarily lead to the highest level of profit, while maximizing utility is not typically a consideration in the resource market. Minimizing cost is important, but it is not the only factor to consider when hiring resources.

In the Resource Market, Firms Demand Resources in Order to