When a firm seeks to minimize costs of producing a given level of output,it does NOT need to know
A)the available alternative methods of production.
B)the level of output that maximizes its profits.
C)the cost of the factors of production it uses.
D)its production function.
E)how its costs change as its production methods change.

Question

Quizplus · Accepted Answer

While maximizing profits may be a goal of the firm, minimizing costs is a separate consideration. Therefore, the firm does not need to know the level of output that maximizes its profits to minimize its costs of producing a given level of output. The other options (A, C, D, and E) are all relevant factors the firm would need to consider in minimizing costs.

When a Firm Seeks to Minimize Costs of Producing a Given