If a Firm Wants to Maximize Profits It Should

question 81

Multiple Choice

If a firm wants to maximize profits it should

• A) hire each factor of production up to the point at which the marginal physical product per last dollar spent is equalized.
• B) hire each factor of production up to the point at which the marginal revenue product per last dollar spent is equalized.
• C) hire each factor of production up to the point at which the marginal factor cost per last dollar spent is equalized.
• D) hire the same number of units of all inputs.

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Definitions:

Product Assortments

The range or variety of product lines and individual products that a company offers for sale to its target market.

Channel Intermediaries

Businesses or individuals that act as intermediaries within the distribution channel, facilitating the movement of goods from manufacturers to consumers.

Logistical Function

Refers to the planning, implementation, and controlling of efficient and effective flow and storage of goods, services, and related information.

Transactional Functions

The activities involved in the buying and selling process, including pricing, promotion, and distribution.