Profit Maximization Is the Price at Which Supply and Demand

question 80

True/False

Profit maximization is the price at which supply and demand are equal,and there is no inclination for prices to rise or fall.

---

Definitions:

Consumption

The use of goods and services by households or individuals, typically measured in economic studies to assess economic activity or well-being.

Budget Line

A graphical representation of all possible combinations of two goods that a consumer can afford with a given budget at prevailing prices.

Income

Money received, especially on a regular basis, from work, property, or investments.

Utility Function

A mathematical representation of a consumer's preference ordering over a set of goods or outcomes.