At the optimum short-run level of output, the firm will be
A)Maximizing total profit
B)Minimizing total losses
C)Either maximizing total profit or minimizing total losses
D)Maximizing profit per unit

Question

Quizplus · Accepted Answer

In the short run, a firm aims to either maximize its total profits or minimize its total losses, depending on market conditions and its cost structure. This is because, in the short run, some factors of production are fixed, and the firm adjusts its output level to best respond to the prevailing market conditions.

At the Optimum Short-Run Level of Output, the Firm Will