Economists are primarily interested in:
A)the marginal cost of production in a firm
B)the accounting profits generated by a firm
C)how firms make production and pricing decisions
D)the value of a firm as manifest in stock price

Question

Quizplus · Accepted Answer

Economists study how firms make decisions related to production and pricing in order to understand how markets work and how to maximize efficiency and welfare. While marginal cost and accounting profits are important factors in these decisions, they are just pieces of the larger puzzle that economists are interested in understanding. The value of a firm as manifest in stock price is primarily of interest to investors, not economists.

Economists Are Primarily Interested In