In Making Decisions About Factor Mix, a Firm Is Seeking

question 185

Multiple Choice

In making decisions about factor mix, a firm is seeking to:

• A) maximize output.
• B) maximize profits.
• C) maximize profits within its budget constraint, much like a consumer maximizes utility within a budget constraint.
• D) do all of the above.

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Definitions:

Enterprise Success

The achievement of desired business outcomes, such as profitability, growth, market share, or innovation, by a company or business enterprise.

Soviet Union

A former federal socialist state in the northern Eurasia that existed from 1922 to 1991, composed of multiple republics, with Moscow as its capital.

Quantity of Output

The total amount of goods or services produced by a firm or industry during a specific time period.

Surplus Supply

A situation where the quantity of a good or service supplied in a market exceeds the quantity demanded at the current price.