A Firm That Produces Its Own Output Is Engaging in ______

question 31

Multiple Choice

A firm that produces its own output is engaging in ______ integration,while a firm that markets its own good is engaging in ______ integration.

• A)vertical; horizontal
• B)downstream; upstream
• C)forward; backward
• D)backward; forward

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Definitions:

Input Increases

A situation where the amount, quality, or number of resources used in production grows, potentially leading to an increase in output.

Marginal Product

The additional output that is produced by adding one more unit of a specific input, ceteris paribus.

Production Function

An equation, graph, or table that describes the maximum amount of output a firm can produce from a given set of inputs.

Variable Factor

In economics, an input in the production process that can be adjusted in the short run to change the quantity of output.