Economists Assume That the Objective of Households Is to Maximize

question 41

Multiple Choice

Economists assume that the objective of households is to maximize ________,and that the objective of firms is to maximize ________.

• A) leisure; profits
• B) utility; profits
• C) utility; utility
• D) leisure; utility

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Definitions:

Market Output

The total quantity of goods and services produced and supplied in a market at a given time.

Carpet Cleaning

The removal of dirt, stains, allergens, and other contaminants from carpets through various cleaning methods to maintain appearance and hygiene.

Long-run Cost Function

Describes the relationship between output and the cost of production when all inputs, including capital, are variable.

Marginal Cost

The production cost for one more unit of a product.