Asked by Abigail Rodriguez on May 11, 2024
Verified
The level of inputs a firm employs will determine a firm's:
A) ability to produce output.
B) elasticity of demand.
C) stock price.
D) location of production.
Inputs
Resources such as labor, materials, and capital that are used in the production process to create goods and services.
Output
The total amount of goods or services produced by an individual, firm, or country over a specific period.
- Comprehend the meaning behind production function graphs and how they affect cost and output.
Verified Answer
MB
Michael BoetticherMay 18, 2024
Final Answer :
A
Explanation :
The level of inputs a firm employs directly impacts its ability to produce output. The more inputs a firm uses, the more output it can produce, and vice versa. Therefore, increasing inputs can help a firm meet increasing demand and maximize profits. The other options, such as elasticity of demand, stock price, and location of production, may be indirectly affected by input levels but are not directly determined by them.
Learning Objectives
- Comprehend the meaning behind production function graphs and how they affect cost and output.