A firm may be unable to maximize profits because it ?
Correct answer: D. The first and third option
- A. does not know its MC and MR
- B. has too much information
- C. has too little information
- D. The first and third option
Explanation
A firm may fail to maximise profit when it lacks information about its marginal cost and marginal revenue, or more generally has too little information. Since the first and third statements are both valid, option d combines them.
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