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:

Control

The ability to shape or control the actions of individuals or the trajectory of occurrences.

Drive-Reduction Theory

A psychological theory that explains motivation as being rooted in the desire to reduce internal states of tension.

Maslow's Hierarchy

A theory in psychology that prioritizes human needs in a pyramid structure, starting from basic physiological needs to self-actualization at the top.

Arousal Theory

A theory that suggests people are motivated to maintain an optimal level of arousal, which varies from one individual to another.