Final answer:
Profit-maximizing firms adjust their methods of production in response to changes in relative prices, known as economic decision-making.
Step-by-step explanation:
Profit-maximizing firms adjust their methods of production in response to changes in relative prices. This is known as economic decision-making. Firms aim to find the quantity of output where total revenues exceed total costs by the greatest amount or where marginal revenue equals marginal cost. By experimenting with different production levels, firms can determine the most profitable course of action.