In Order to Maximize Profits,firms Must Produce at the Lowest

question 62

Multiple Choice

In order to maximize profits,firms must produce at the lowest possible cost.However when producing at a cost that is higher than necessary:

• A)a monopoly firm can continue to operate with lower profits but a competitive firm will have to exit the market.
• B)a monopoly firm has the incentive to lower cost and increase profit but a competitive firm will increase price and remain in the market.
• C)a monopoly firm will expand output and increase price while a competitive firm will not change output or price.
• D)a monopoly firm has the incentive to produce at the lowest cost possible while a competitive firm will only earn a lower economic profit.

---

Definitions:

Nature

The phenomena of the physical world collectively, including plants, animals, the landscape, and other features and products of the earth, as opposed to humans or human creations.

Retinal Images

Visual representations formed on the retina by the lens of the eye, serving as the basis for visual perception.

Cataract

A medical condition where the lens of the eye becomes cloudy, leading to decreased vision and, if untreated, potentially blindness.

Brightness Constancy

the human visual system's ability to recognize the brightness of an object regardless of the amount of light it reflects.