In Economics, Firms Are Assumed to

question 154

Multiple Choice

In economics, firms are assumed to

• A)maximize output prices.
• B)minimize output prices.
• C)maximize profits.
• D)maximize consumer surplus.
• E)maximize customer satisfaction.

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Definitions:

Lubrication Cost

An expense category covering the costs associated with the lubrication of machinery and equipment to ensure smooth operation.

Variable Cost

Expenses that fluctuate with the level of output, including costs like materials and labor directly involved in the production.

Kilowatt/Hour

A unit of energy equivalent to one kilowatt of power expended for one hour.

Production Workers

Employees directly involved in the manufacturing process, responsible for converting raw materials into finished goods.