A firm that maximizes profits also

Question

Quizplus · Accepted Answer

A firm that maximizes profits will use the least-cost combination of resources, meaning it achieves the highest output level possible for a given set of inputs. This does not necessarily involve cutting corners or paying lower input prices than other firms, but rather finding the most efficient production processes. Efficiency is actually necessary for maximizing long-term profits, as cutting corners or producing low-quality products may lead to a loss of customers or damage to the firm's reputation.

A Firm That Maximizes Profits Also