In analyzing a market system, economists often assume that firms will choose the production techniques that will give them the maximum revenues

Question

Business

Vanessa Cardenas

14 October, 05:46

In analyzing a market system, economists often assume that firms will choose the production techniques that will give them the maximum revenues

+3

Answers (1)

Know the Answer?

Hoffman · Answer 1

The given statement that is false.

In analyzing a market system, economists do not assume that firms will choose the production techniques that will give them the maximum revenues. Instead, economists assume that firms will choose the production technique that will use the resources the best and most efficient way. This is because economics is concerned with the best use of scarce resources to achieve maximum satisfaction of economic wants.