A Firm Will Use Spontaneous Funds to the Extent Possible;

question 38

True/False

A firm will use spontaneous funds to the extent possible; however, due to credit terms, contracts with workers, and tax laws there is little flexibility in their usage.

---

Definitions:

Variable Input(s)

Inputs or resources whose quantity can be changed in the short term to adjust the level of production.

Short Run

A period in economics where at least one factor of production is fixed, limiting the adjustments a firm or industry can make.

Inputs

Resources such as labor, materials, and capital that are used in the production process to create goods and services.

Output

The total amount of goods or services produced by an individual, firm, or country over a specific period.