All the firm needs to know to find its maximum-profit position is the least-cost combination of factors for each possible output.

Question

Quizplus · Accepted Answer

Finding the least-cost combination of factors for each possible output is crucial for cost minimization, but to determine the maximum-profit position, a firm also needs to consider the revenue side by analyzing demand, prices, and the competitive environment.

All the Firm Needs to Know to Find Its Maximum-Profit