Of the Following,which Is the Least Likely to Represent a Firm's

question 59

Multiple Choice

Of the following,which is the least likely to represent a firm's long- run decision?

• A)By how much should output be expanded from existing plants?
• B)What technique (technology)is the best to use under current factor pricing?
• C)What should be the size and design of a firm's new plant?
• D)Should the firm choose a method of production that uses relatively more capital than labour?
• E)Should the firm invest resources in the development of better technologies?

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Definitions:

Public Saving

The portion of the government's revenue that remains after accounting for government spending.

Private Saving

The portion of households' income that is not spent on consumption but saved for future use.

Loanable Funds

The sum of money available for borrowing, influenced by savings and investments, within an economy at any given time.

National Saving

The total amount of saving in a country, equal to the sum of private and public saving, representing the national income not spent on consumption or government expenditure.