Asked by Nathan Seifner on May 09, 2024
Verified
Refer to Figure 15.3. Gwen's Country Curtains is currently manufacturing 1,000 pairs of curtains per month. This firm
A) should reduce the number of pairs of curtains it manufacturers to maximize profit.
B) should increase the number of pairs of curtains it manufacturers to maximize profit.
C) should continue to produce 1,000 pairs of curtains; it is already maximizing profits.
D) could increase profits by either increasing or decreasing the number of pairs of curtains it manufactures.
Maximize Profit
A strategy or goal where a firm seeks to achieve the highest possible profit through its operations and decision-making.
- Identify strategies for maximizing profits or minimizing losses in the short run.
Verified Answer
CA
Camille AlfordMay 10, 2024
Final Answer :
C
Explanation :
Without seeing Figure 15.3, the correct answer cannot be determined based on the information provided. However, if the question implies that producing 1,000 pairs of curtains per month is the optimal level for maximizing profits, then the answer would suggest that the firm is already operating at its most profitable level. This would mean that at 1,000 pairs, the firm's marginal costs likely equal its marginal revenues, which is the condition for profit maximization in economic theory.
Learning Objectives
- Identify strategies for maximizing profits or minimizing losses in the short run.