A firm that maximizes profits also
A) is inefficient.
B) cuts corners in production processes so that its products are made too cheaply.
C) uses the least-cost combination of resources.
D) pays input prices lower than other firms do.
Answer: C
Economics
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The 2002 tax reform is a good example of special interests being less influential because Congress was considering comprehensive tax reform
a. True b. False
Economics
According to the capture hypothesis, it appears that regulators eventually end up
A) adopting policies that benefit the firms being regulated. B) adopting policies that benefit consumers at the expense of the regulated firms. C) adopting policies that benefit no one. D) satisfying neither producers nor consumers, but striving to control as much as possible.
Economics