If All Firms Are Profit Maximizers,then the Following Is Assured

question 74

Multiple Choice

If all firms are profit maximizers,then the following is assured:

• A)allocative efficiency.
• B)each firm is productively efficient.
• C)allocative and productive efficiency.
• D)that the economy is operating inside the production possibilities boundary.
• E)that firms attain the lowest possible average costs.

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Definitions:

Start-Up Costs

The initial expenses required to establish a new business, including but not limited to licensing fees, equipment, and marketing.

Wheel Of Retailing

A theory that describes how retail outlets enter the market with low prices and simple facilities to then upgrade their operations as they grow.

Limited Menus

A dining or food service concept where only a small selection of options is offered to streamline operations and focus on specialty or quality items.

Checkers Drive-In

A fast-food chain known for its burgers, fries, and milkshakes, offering drive-thru and walk-up service, emphasizing speed and value.