In resource markets,_____
A)firms demand the resources that maximize profit.
B)firms demand the resources that minimize profit.
C)firms supply the resources that maximize utility.
D)firms supply the resources that minimize utility.
E)firms and profit are not related.

Question

Quizplus · Accepted Answer

Firms in resource markets aim to maximize profits by using resources that will result in the highest level of output at the lowest cost. Therefore, they will demand the resources that maximize profit.

In Resource Markets,_____