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

Question

Quizplus · Accepted Answer

The level of inputs, which includes factors of production such as labor, capital, and materials, directly affects a firm's ability to produce output. Without sufficient inputs, a firm cannot produce the desired level of output, and may even suffer losses due to inefficiencies. Profitability and stock price may be affected by a firm's output, but ultimately depend on a variety of external factors as well. Location of production may also be influenced by inputs, but is not directly determined by them.

The Level of Inputs Will Determine a Firm's