In Analyzing a Market System, Economists Often Assume That Firms

In analyzing a market system, economists often assume that firms will choose the production techniques that will give them the maximum revenues.Difficulty: 02 Medium
Learning Objective: 02-03 Explain how the market system answers the five fundamental questions of what to produce, how to produce, who obtains the output, how to adjust to change, and how to promote progress.Test Bank: II Topic: Five Fundamental Questions