A firm's cost of production is affected by changes in
A. the available technology.
B. input prices.
C. profits.
D. both a and b
E. both b and c
Answer: D
You might also like to view...
On average each year, about 7 percent of all firms in the United States are new and 1 percent go out of business. According to the text, luck may play a role. Which of the following reasons for failure might be attributable to luck?
A) An individual undertakes a very risky venture so that his product is first to market. B) An executive fails to undertake an investment that would have yielded great success. C) An executive focuses on the incorrect objective. D) An executive undertakes an investment just prior to a major natural catastrophe that destroys the firm's assets. E) An executive fails to perceive what customers really want.
If a bank holds 100 percent of its deposits as reserves, then: a. it cannot make a loan
b. it cannot accept a deposit. c. it cannot allow a withdrawal. d. it cannot be taxed by the government.