In the Long Run, a Profit- Maximizing Firm Produces Any

question 109

Multiple Choice

In the long run, a profit- maximizing firm produces any given level of output by choosing the production method that

• A) equates the average cost per unit of all factors.
• B) equates the marginal product of all factors.
• C) produces that output at the lowest possible cost.
• D) is associated with a flat total cost curve.
• E) maximizes the marginal product of all factors.

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