In the real world, agribusiness firms:

Question

Quizplus · Accepted Answer

Agribusiness firms, like any other profit-seeking firms, change their output combinations based on relative prices to maximize their profits. This means that they will produce the mix of products that will generate the highest possible income given the cost of production for each product. Changing output combinations based on managerial skill alone is not a sufficient explanation, and option A is incorrect because firms always have the ability to adjust their production levels. Option D is also incorrect because it does not provide an answer to the question.

In the Real World, Agribusiness Firms