Consider a Firm in the Long Run That Is Trying

question 56

Multiple Choice

Consider a firm in the long run that is trying to maximize its profits.It should

• A)select the most technically efficient method of production regardless of the level of production.
• B)maximize the marginal product of all factors of production.
• C)charge the highest price.
• D)minimize the cost of producing whatever level of output it chooses.
• E)charge the lowest price possible given the minimum possible cost.

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Definitions:

Binding Contract

A binding contract is an agreement between two or more parties that is enforceable by law, signaling that all parties have accepted the terms whether written or oral.

Employment Setting

Refers to the place or context in which employment occurs, including physical locations, organizational environments, and remote or virtual workplaces.

Bilateral Contract

A bilateral contract is an agreement in which each of the two parties makes a promise to the other, creating mutual obligations.

Consideration

In contract law, a benefit or something of value that is exchanged between parties to a contract, making the agreement legally binding.