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An optimal decision: ▪ minimizes output cost. ▪ maximizes profits. ▪ produces the result most consistent...

An optimal decision:

▪ minimizes output cost.

▪ maximizes profits.

▪ produces the result most consistent with decision maker objectives.

▪ maximizes product quality.

Business   Economics   
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Answer #1

When we talk about the optimal decision it means with the limited resources the selection of the best outcome

A firm main goal generally is to maximize the profit and and achieve where the marginal revenue equals to the marginal cost

Marginal revenue is the revenue that is generated by adding 1 extra additional unit

Marginal cost is the cost that is generated by adding 1 extra additional unit

Minimising the output cost comes under the economics of scale.

But it may not lead to always optimal decision

Also a firm goal is to maximize the profit not the quality

So option D is neglected

The correct answer here is option B that is maximize the profit

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