Which of the Following Is Not an Appropriate Reason for Firm

question 68

Multiple Choice

Which of the following is not an appropriate reason for firm growth?

• A) Increasing the compensation of the top managers of the firm
• B) Ability to attract and retain talented employees
• C) Need to accommodate the growth of key customers
• D) Market leadership
• E) Economies of scale

---

Definitions:

Marginal Cost

The uptick in aggregate cost due to the output of an extra unit of a product or service.

Monopolist

An entity that is the sole provider of a particular product or service in a market, possessing significant market power and control over prices.

Output

The amount of goods or services produced by a person, machine, factory, or company within a certain period.

Demand Schedule

A diagram indicating the volume of goods or services that consumers can and will buy at assorted prices.