If All Firms Are Profit Maximizers, Then the Following Is

question 53

Multiple Choice

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

• A) allocative efficiency.
• B) that firms attain the lowest possible average costs.
• C) productive efficiency.
• D) that the economy reaches the production possibilities boundary.
• E) allocative and productive efficiency.

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Definitions:

Operant Conditioning

An educational method where the intensity of an action is adjusted by rewards or penalties.

Behavioral Perspective

A psychological approach examining how behavior is influenced by interactions between individuals and their environments.

Fixed Beliefs

Persistent convictions or opinions that are hard to change.

Projecting

The psychological defense mechanism of attributing one's own attitudes, feelings, or desires to someone or something else.