Consider a firm in the long run that is trying to maximize its profits.It should
A)select the most technically efficient method of production regardless of the level of production.
B)maximize the marginal product of all factors of production.
C)charge the highest price.
D)minimize the cost of producing whatever level of output it chooses.
E)charge the lowest price possible given the minimum possible cost.

Question

Quizplus · Accepted Answer

In the long run, a firm can adjust its inputs to minimize the cost of producing a given level of output. By doing so, it can maximize its profits. Therefore, the firm should minimize the cost of producing whatever level of output it chooses. This involves finding the most efficient combination of factors of production, including labor, capital, and raw materials. Thus, option D is the correct answer.

Consider a Firm in the Long Run That Is Trying