A Firm That Is Maximizing Its Profits by Producing a Certain

question 63

Multiple Choice

A firm that is maximizing its profits by producing a certain level of output must also be

• A)minimizing its cost of producing that output.
• B)maximizing its sales.
• C)minimizing its variable costs.
• D)maximizing its output.
• E)maximizing its revenue.

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Definitions:

Price

The financial sum expected, needed, or handed over in exchange for an item.

Quantity Supplied

The amount of a good or service that producers are willing and able to sell at a given price over a specific period of time.

Profitable

Capable of generating financial gain or benefits exceeding costs, making a venture worthwhile.

Price

The amount of money required to purchase a good, service, or asset, often determined by supply and demand dynamics in the market.