The Fifth Factor of Production Identified by Many Managers and Academicians

question 53

Multiple Choice

The fifth factor of production identified by many managers and academicians is:

• A)nanotechnology
• B)productivity
• C)quality
• D)social responsibility
• E)knowledge

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Definitions:

Economic Profit

The profit from producing goods and services while considering both explicit and implicit costs, including opportunity costs.

Producer Surplus

The gap between the price that sellers are prepared to accept for a product and the real price it sells for in the market.

Total Variable Costs

The total of all costs that vary with the level of production or output.

Fixed Costs

Costs that do not change with the level of output or business activity, such as rent, salaries, or loan payments.