A firm cannot control all of the factors that allow it to make economic profits.Which of the following is an example of an uncontrollable factor?
A)product differentiation
B)input prices
C)producing at a lower average total cost than competing firms
D)hiring competent managers

Question

Quizplus · Accepted Answer

Input prices are an example of uncontrollable factors as a firm has no control over the prices of raw materials or factors of production. The other options are controllable factors as a firm can control its product differentiation, production cost, and hiring competent managers.

A Firm Cannot Control All of the Factors That Allow