Economics 9708 · AS & A Level · Behavioural economics

Behavioural economics — practice question

Which action taken by a firm is most likely to increase its dynamic efficiency?

  • Adistributing all its current profit to its existing shareholders
  • Bmaximising the labour productivity of its current workers
  • Cminimising the average cost of producing its current output
  • Dretaining its current profit for product research and development

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