The level of inputs a firm employs will determine a firm's:
A)ability to produce output.
B)elasticity of demand.
C)stock price.
D)location of production.

Question

Quizplus · Accepted Answer

The level of inputs a firm employs directly impacts its ability to produce output. The more inputs a firm uses, the more output it can produce, and vice versa. Therefore, increasing inputs can help a firm meet increasing demand and maximize profits. The other options, such as elasticity of demand, stock price, and location of production, may be indirectly affected by input levels but are not directly determined by them.

The Level of Inputs a Firm Employs Will Determine a Firm's