In the long run,a profit-maximizing firm producing a given level of output chooses the production method that
A)produces that output at the lowest possible cost.
B)maximizes the marginal product of all factors.
C)maximizes the marginal product of labour.
D)leads to a flat total cost curve.
E)MINIMIZES LABOUR INPUT.

Question

Quizplus · Accepted Answer

A profit-maximizing firm would choose the production method that produces the given level of output at the lowest possible cost. This is because lower costs result in higher profits for the firm.

In the Long Run,a Profit-Maximizing Firm Producing a Given Level