Figure 2-8 -Refer to Figure 2-8. in the Circular Flow Diagram,economic Agents

question 141

Multiple Choice

Figure 2-8

-Refer to Figure 2-8. In the circular flow diagram,economic agents M represent

• A) households.
• B) product markets.
• C) firms.
• D) factor markets.

---

Definitions:

Single Product

A business model focusing on the production or sale of one specific item or service.

Multiple Product

The offering or production of more than one type of product by a company.

Capacity Constraints

Limitations on the maximum output or production an organization can achieve due to current resources and operational capabilities.

Price to Capacity

The pricing strategy based on the production capacity of a company, often used in industries with significant fixed costs.