Firms face trade-offs because
A)managers don't know which inputs to use.
B)inputs are scarce.
C)markets set prices of goods they sell.
D)marginal reasoning leads to uncertainty.

Question

Quizplus · Accepted Answer

Firms face trade-offs because inputs are scarce. This means that they must make choices about how to allocate their limited resources to produce the goods and services they offer. If they were not faced with scarcity, they could simply use all resources to produce everything, without having to make any trade-offs or choices.

Firms Face Trade-Offs Because