A firm might choose to produce its own inputs if:
A. specialized investment is not important.
B. spot markets for the input exist.
C. the exchange environment is not complex.
D. long-term contracts are costly to write.
Answer: D
Economics
You might also like to view...
According to the production possibilities model, if more resources are allocated to the production of physical and human capital, then which of the following is likely to happen?
A) The country's total production will fall. B) The production possibilities frontier will shift inward in the future. C) Fewer goods will be produced for consumption today. D) Future economic growth will decline.
Economics
Adam Smith believed that if people were free to pursue their own interests.
What will be an ideal response?
Economics