Question
If the profit maximization assumption holds true, then __________.
average costs, total costs, and marginal costs will be evaluated by the firm to help establish the profit-maximizing level of output
a rational firm will choose the quantity of output that maximizes its loss
cost information is not relevant to the decision of how much of a good to produce
a rational firm will choose the quantity of output that minimizes its profits
average costs, total costs, and marginal costs will be evaluated by the firm to help establish the profit-maximizing level of output
a rational firm will choose the quantity of output that maximizes its loss
cost information is not relevant to the decision of how much of a good to produce
a rational firm will choose the quantity of output that minimizes its profits
Answers
GPT-4o mini
If the profit maximization assumption holds true, then **average costs, total costs, and marginal costs will be evaluated by the firm to help establish the profit-maximizing level of output**.
This is because a rational firm seeks to determine the quantity of output at which marginal cost equals marginal revenue, ensuring profit is maximized. Evaluating cost information is crucial in this process.
This is because a rational firm seeks to determine the quantity of output at which marginal cost equals marginal revenue, ensuring profit is maximized. Evaluating cost information is crucial in this process.