The profit-maximizing output rule applies:
A)only to monopolistically competitive businesses
B)only when the business is a "price-taker"
C)only to monopolies
D)only to perfectly competitive businesses
E)to businesses in all types of industries

Question

Quizplus · Accepted Answer

The profit-maximizing output rule applies to businesses in all types of industries, including monopolies, monopolistically competitive businesses, and perfectly competitive businesses. It is a universal economic concept that businesses can use to determine the optimal quantity of output to produce in order to maximize their profits.

The Profit-Maximizing Output Rule Applies