Which of the Following Is Not a Factor of Production

question 134

Multiple Choice

Which of the following is not a factor of production?

• A) A computer chip.
• B) The service of a lawyer.
• C) Dollars.
• D) All of the above are factors of production.

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Definitions:

Optimal Output

The level of production that maximizes a firm's profit or minimizes its cost, given its production function and market conditions.

Price to Clear

Price to Clear is the market price at which the quantity of goods supplied is equal to the quantity of goods demanded, thereby clearing the market.

Profit Per Unit

The revenue obtained per unit of a product or service sold, minus the cost per unit.

Optimal Output

The level of production that generates the highest possible profit for a firm, taking into account costs and revenue.