Question

In a situation of neither input nor output fixed, the proper economic criterion is to _________________. A. Maximize the output B. Minimize the inputs C. Minimize (inputs - outputs) D. Maximize (outputs - inputs)

Answer 1

Answer:

D. Maximize (outputs - inputs)

Explanation:

The input is the raw material, labor, the efforts that is used in making the product while the output is the product or the result arising from the input

The profit arises when output and the input varies from each other

i.e

Profit = Output - input

In the case where there is neither an input nor output fixed, so we have to maximize the profit i.e (output - input) but the condition is that they are different from each other

Hence, the correct option is D.