Organizations Must Acquire a Variety of Resources in Order to Produce

question 44

Multiple Choice

Organizations must acquire a variety of resources in order to produce a product or service of value. These resources may include materials, equipment, financing, or even employees. The sources that provide these various resources are referred to as

• A) Resource firms.
• B) Placement centers.
• C) Retailers.
• D) Suppliers.
• E) Customs houses.

---

Definitions:

Marginal Returns

The additional output produced as a result of utilizing one more unit of input, which can decrease as more units are added.

Labor

The physical and mental effort used in the production of goods and services.

Capital

Resources or assets that are used in the production of goods and services, including physical assets like machinery and buildings, and intangible assets like patents.

Fixed-Proportion

A production process in which the inputs are used in fixed ratios, with no substitution possible between them.