Which of the Following Statements About Resource Allocation Is Correct?​

question 129

Multiple Choice

Which of the following statements about resource allocation is correct?​

• A)Within a firm, resources are allocated by prices; in the market, resources are allocated by the decisions of managers.
• B)Resources are allocated by prices both in the market and within the firm.
• C)Within a firm, resources are allocated by the decisions of managers; in the market, resources are allocated by prices.
• D)Resources are allocated by the decisions of managers both within the firm and in the market.
• E)In the market, resources are allocated either by prices or by the decisions of managers; within a firm, resources are allocated by prices.

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Definitions:

Fixed Costs

Expenses that do not change with the level of production or sales, such as rent, salaries, and insurance.

Labor

The body of persons engaged in work or employment, especially manual or physical work.

Materials

The physical substances from which objects are made, available in different forms and used for various purposes in production.

Fixed Costs

Costs that remain constant regardless of the amount of goods produced or sold, including examples like rent, wages, and insurance premiums.