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:

Equation

A claim within mathematics that equates two expressions as being identical.

Perpendicular

Describes two lines, planes, or surfaces meeting at a right angle (90 degrees).

Horizontal Line

A straight line with no slope, moving left to right parallel to the x-axis in Cartesian coordinates.

Slope-intercept Form

A way of writing linear equations using the formula \(y = mx + b\), where \(m\) is the slope of the line and \(b\) is the y-intercept.