Why would a profit-seeking firm need to tailor its decisions about the quantity of labor inputs that it purchases?
A. to produce the highest profitable quantity of output at the lowest possible marginal cost
B. deciding what quantity to produce is one of the major choices a profit-seeking firm makes
C. the quantity of labor is the only variable cost choice a profit-seeking firm can make
D. to produce the profit-maximizing quantity of output at the lowest possible average cost
Answer:D
Why would a profit-seeking firm need to tailor its decisions about the quantity of labor inputs that it purchases?
A. to produce the highest profitable quantity of output at the lowest possible marginal cost B. deciding what quantity to produce is one of the major choices a profit-seeking firm makes C. the quantity of labor is the only variable cost choice a profit-seeking firm can make D. to produce the profit-maximizing quantity of output at the lowest possible average cost
Explanation: 25. In a free market economy, firms operating in a perfectly competitive industry are said to have only one major choice to make. Which of the following correctly sets out that choice?