In the short run, which factor is not relevant in profit-maximizing output decisions?
A) wage rates
B) raw material costs
C) mortgage costs
D) energy costs
E) market price

Question

Quizplus · Accepted Answer

In the short run, fixed costs such as mortgage costs are not relevant to profit-maximizing output decisions because they do not change with the level of output. Variable costs like wage rates, raw material costs, and energy costs, as well as the market price, directly affect the profit per unit of output.

In the Short Run, Which Factor Is Not Relevant in Profit-Maximizing