A firm manager with vertical indifference curves (output on the horizontal axis,profit on the vertical axis)views:
A) only profits to be "goods."
B) only output to be "goods."
C) both profits and outputs to be "goods."
D) None of the preceding statements is correct.

Question

Quizplus · Accepted Answer

If a firm manager has vertical indifference curves, it means that the firm can achieve the same level of profit at any level of output. This implies that the manager is indifferent between different levels of profit and only cares about the level of output. Therefore, output is considered a "good," while profits are not a concern.

A Firm Manager with Vertical Indifference Curves (Output on the Horizontal