We claimed in class that firms minimize costs.

a. If that is so, does that mean that they must invariably deliver low-quality products? Briefly explain.

b. The oilsands cost data I showed indicated that not every firm seems to have the same cost. Does that mean that some must be not cost-minimizing? Briefly explain.

c. What should we expect must happen to firms that do not cost-minimize? Briefly explain.

Answer rating: 100% (QA)

a No not at all Firms minimise cost of a good that is of better quality so that consumers will e... View the full answer