Profit Maximization Implies That Firms Will Want to ________

question 65

Multiple Choice

Profit maximization implies that firms will want to ________.

• A)accumulate labor while the MPL is greater than the real wage
• B)accumulate capital while the MPK is greater than the rental price of capital
• C)not accumulate either input without limit,because of diminishing returns to each factor
• D)all of the above
• E)none of the above

---

Definitions:

Cash Flows

The net amount of cash being transferred into and out of a business, indicating its liquidity level over a period.

Financing Activities

These are activities that result in changes in the size and composition of the equity capital or borrowings of the entity.

Schedule

A plan that lists events, activities, or tasks along with their intended or expected times and dates.

Investing Activities

Part of a company's cash flow statement that shows the amount of money spent or generated from various investment-related activities in a specific time period.