What are the three decisions that all firms must make?
What will be an ideal response?
(1.) How much output to supply.
(2.) How to produce that output.
(3.) How much of each input to demand.
You might also like to view...
Which of the following is correct concerning opportunity cost?
a. Except to the extent that you pay more for them, opportunity costs should not include the cost of things you would have purchased anyway. b. To compute opportunity costs, you should subtract benefits from costs. c. Opportunity costs and the idea of trade-offs are not closely related. d. Rational people should compare various options without considering opportunity costs.
The aggregate demand curve sloping downward can be explained in part through:
A. the wealth effect. B. the negative relationship between the price level and government spending. C. the positive relationship between the price level and net exports. D. All of these are true.