Businesses choose from several production processes by:
A)producing a given level of output with a process that minimizes costs
B)selecting the most efficient process of production given the price of each unit of output
C)using a balanced mix of inputs
D)choosing to be capital-intensive at all times
E)choosing to be labour-intensive at all times

Question

Quizplus · Accepted Answer

The ultimate goal of businesses is to maximize profits. Minimizing costs is one way to achieve this goal. By producing a given level of output with a process that minimizes costs, businesses can lower their production costs and ultimately increase their profits. This makes option A the best choice.

Businesses Choose from Several Production Processes By