A Firm Is More Likely to Produce Its Own Input

question 40

Multiple Choice

A firm is more likely to produce its own input if all of the following are true except which one?

• A)The firm experiences diseconomies of scale when producing the input.
• B)The transportation cost of the input is expensive.
• C)The firm is concerned about the hold- up problem.
• D)The firm has trade secrets.

---

Definitions:

Net Income

The net income of a business following the subtraction of all costs and taxes from its total revenue.

Capital Balances

This represents the amount of funds that shareholders have invested in a company, often reflected in the equity section of a balance sheet.

Partner's Equity

The interest or ownership a partner has in a partnership, representing their claim on the assets after liabilities are settled.