Which of the Following Statements Is TRUE Regarding Profit Maximization

question 51

Multiple Choice

Which of the following statements is TRUE regarding profit maximization in competitive markets?
I. When all firms pursue profits, none of them achieve profits.
II. When all firms pursue profits, only the most innovative will achieve profits.
III. Production is divided in such a way that total costs of production are minimized.

• A) I only
• B) II only
• C) I and III only
• D) II and III only

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Definitions:

Groupthink

A mental effect observed in a collective where the pursuit of consensus or uniformity leads to illogical or ineffective choices.

RADAR Model

A framework used in business to Recognize, Avoid, Detect, Answer, and Recover from potential risks or issues.

Quality Standards

Specific criteria within an industry or profession that define the degree of excellence or the minimum acceptable levels of quality for products and services.

Feel-good Commercials

Advertising campaigns designed to evoke positive emotions and associate those feelings with a brand or product.