Answered You can hire a professional tutor to get the answer.
QUESTION
Why does the assumption of profit maximization imply that the firm will produce each output with a basket of inputs that minimizes cost?
- Why does the assumption of profit maximization imply that the firm will produce each output with a basket of inputs that minimizes cost?
- Explain why the perfectly competitive firm at long-run equilibrium produces an output for which long- run average cost is minimized. Is this output profit maximizing? Why or why not?
