When a Firm Has Maximized Profits

question 245

Multiple Choice

When a firm has maximized profits

• A) it has also minimized total costs.
• B) the marginal product of each input is also maximized.
• C) the marginal physical product is greater than the input price for all inputs.
• D) its marginal cost is zero.

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Definitions:

Total Equity

The total net worth of a company, calculated as total assets minus total liabilities.

Total Debt Ratio

A measure of a company's financial leverage calculated by dividing its total liabilities by its total assets.

Total Assets

Refers to the sum of everything of value owned by a business, including cash, securities, receivables, inventories, and fixed assets.

Sources of Cash

Various origins from which a business or individual receives money, including operations, financing, and investing activities.