The three economic criteria for choosing the best


The three economic criteria for choosing the best alternative are maximize the difference between output and input, minimize input, and maximize output. For each of the following situations, what is the correct economic criterion?

(a) A manufacturer of plastic drafting triangles can sell all the triangles he can produce at a fixed price. As he increases production, his unit costs increase as a result of overtime pay and so forth. The manufacturer's criterion should be.

(b) An architectural and engineering firm has been awarded the contract to design a wharf for a petroleum company for a fixed sum of money. The engineering firm's criterion should be.

(c) A book publisher is about to set the list price (retail price) on a textbook. The choice of a low list price would mean less advertising than would be used for a higher list price. The amount of advertising will affect the number of copies sold. The publisher's criterion should be.

(d) At an auction of antiques, a bidder for a particular porcelain statue would be trying to.

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Business Economics: The three economic criteria for choosing the best
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