A Basic Assumption of Production Is That the Firm

question 66

Multiple Choice

A basic assumption of production is that the firm:

• A) cannot borrow money to finance its input expenditures.
• B) can buy as much labor and capital as it desires at fixed prices.
• C) must bid up the prices of labor and capital in order to produce more output.
• D) has a downward-sloping budget constraint.

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Definitions:

Values

Fundamental beliefs or standards of behavior that guide decisions and actions by expressing what is important and worthwhile.

Founding Team

The group of individuals who start a company, often bringing diverse skills and backgrounds to the venture.

Accelerator

An organization that provides tailored support in order to help new ventures scale and grow.

Incubator

An organization that helps early stage entrepreneurs refine ideas, build out technology, and get access to resources.