To Maximize Profit in the Long Run, a Firm Must

question 107

Multiple Choice

To maximize profit in the long run, a firm must

• A)charge the highest price possible
• B)produce where demand is unit elastic
• C)sell the most output possible
• D)minimize the cost of producing any given amount of output
• E)produce at minimum long-run total cost

---

Definitions:

Special Revenue Fund

A fund used by a government to account for revenue from specific sources that are legally restricted to expenditure for particular purposes.

Capital Projects Fund

A type of governmental accounting fund used to finance and track the costs of major capital improvements and constructions.

Permanent Fund

A fund established to provide a stable source of revenue for specific purposes, often funded by endowments or resources that generate interest or other income.

Agency Fund

An agency fund is a fiduciary account held by a governmental unit that contains resources received and held as an agent for others, to be expended or invested according to the principal's direction.