The firm manager with indifference curves which are convex from the origin (output on the horizontal axis and profit on the vertical axis) views
A)only profits to be "goods."
B)only outputs to be "goods."
C)both profits and outputs to be "goods."
D)none of the statements associated with this question are correct.

Question

Quizplus · Accepted Answer

The convex indifference curves indicate that the firm manager values both output and profit. This means that the manager considers both goods and strives to maximize both simultaneously. Therefore, both profits and outputs are considered "goods" by the firm manager.

The Firm Manager with Indifference Curves Which Are Convex from the Origin