Which of the Following Is True of a Firm That

question 15

Multiple Choice

Which of the following is true of a firm that has reached the limit on its resources?

• A)It has idle capacity.
• B)Opportunity costs are now relevant.
• C)It has no relevant costs.
• D)It has excess capacity.

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Definitions:

Overly Optimistic

Describes a tendency to hold a rosier outlook than reality might support, often resulting in unrealistic expectations.

Hierarchy Of Goals

A prioritized structure of objectives, ranging from the most immediate and individual to the broad and long-term.

Planning Fallacy

The tendency to underestimate how much time is needed to complete a task, leading to overly optimistic time estimations.

Optimistic Mindset

A mental attitude characterized by hope and confidence in success and positive outcomes.