The profit-maximizing output rule can be used to determine an output level that will:
A)guarantee the business a profit
B)ensure a business's profit is positive
C)maximize a business's loss
D)result in a profit closest to zero at all times
E)minimize a business's loss

Question

Quizplus · Accepted Answer

The profit-maximizing output rule is designed to find the level of output where a business can maximize its profits or minimize its losses. It does not guarantee a profit, ensure a profit is positive, aim to maximize losses, or aim to keep profits close to zero.

The Profit-Maximizing Output Rule Can Be Used to Determine an Output