A Firm That Maximizes Profits Also

question 107

Multiple Choice

A firm that maximizes profits also

• A) is inefficient.
• B) cuts corners in production processes so that its products are made too cheaply.
• C) uses the least-cost combination of resources.
• D) pays input prices lower than other firms do.

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Definitions:

Lost To Competitor

A situation where a business loses a potential or existing customer to a rival company, often prompting analysis to improve future competitiveness.

Serious Mistake

An error or decision with significant negative consequences.

Strong Relationship

A deep, positive connection between two parties, characterized by trust, respect, and mutual benefit.

First Order

The initial purchase made by a customer from a business, often seen as a critical step in establishing a customer relationship.