A profit-maximizing firm is constrained by all of the following except
A)demand for its product.
B)limited resources.
C)available technology.
D)limited information.
E)location.

Question

Quizplus · Accepted Answer

A firm's location is not necessarily a constraint on its profit-maximizing behavior. While location may affect a firm's costs or its ability to reach certain markets, it is not inherently a limiting factor that the firm must account for in making decisions about pricing, production, or other aspects of its operations. All of the other options listed - demand, resources, technology, and information - could potentially limit a firm's ability to maximize profits.

A Profit-Maximizing Firm Is Constrained by All of the Following