What Is the Basic Activity of a Firm

question 119

Multiple Choice

What is the basic activity of a firm?

• A)To set the prices of its products as high as possible.
• B)To compete with other firms that produce similar products.
• C)To provide jobs for its employees.
• D)To use inputs to produce outputs of goods and services.

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Definitions:

Flex Time

An arrangement that allows employees to alter their start and finish times, provided that the total work hours remain constant.

Wages

Payments made to workers for their labor, typically based on hours worked or the amount of output produced.

Economics in Practice

The application of economic theories and principles to real-world scenarios and the analysis of actual economic practices.

Variable Input

In economics, any resource or factor of production whose quantity can be changed in the short term to influence output.