“The use of language in economics can be very confusing because the economic logic itself is subtle. A case in point is profit maximization and cost minimization. One cannot exist without the other. We all know that profit maximization implies cost minimization. What may not be as obvious is that cost minimization also implies profit maximization. This explains why economists’ advice to the real world managers that they should be concerned only with cost minimization if they want to maximize profits.”
Please note carefully this question is about what is false, not about what is correct.
Part A. Clear identification of what is false in the reasoning [10 marks]
Part B. Justification of choice of sentences in