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, when revenues are constant, directly contributes to profit maximization because profits are the difference between revenues and costs. Reducing costs while maintaining the same level of revenues increases profits.

Holding Revenues Constant, Cost Minimization by Firms Is Equivalent to