A profit-maximizing firm would
a. consider opportunity costs rather than accounting costs when making decisions about output.
b. expand current output if the revenues expected from doing so were less than the expected costs.
c. enlarge its current plant size if present depreciation costs were less than average variable costs.
d. increase output in the next period if accounting profits during the previous period were positive.
A
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What is the most common reason people demand money?
A) Each bill and coin is a reflection of important people and events in a nation's history. B) Since very few of us engage in a flow of transactions, money is our financial safety net. C) People desire to use money as a medium of exchange when they buy goods and services. D) They demand money to ensure that the nation's government will not spend too much.
The demand for an input will be more inelastic when
A) the demand for the product being produced is elastic. B) the cost of the input is a relatively large percentage of total production costs. C) the time period being considered is relatively long. D) it is difficult to substitute other inputs for this input.