When a firm maximizes profits it will simultaneously minimize opportunity costs.

Question

Quizplus · Accepted Answer

When a firm maximizes profits, it is choosing the option that will bring in the most revenue while minimizing the cost of producing or providing that option. This means that the firm is making the best use of its resources and minimizing the opportunity costs of choosing another option that may have lower profits or higher costs. Therefore, maximizing profits does help to minimize opportunity costs.

When a Firm Maximizes Profits It Will Simultaneously Minimize Opportunity