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 an uncontrollable factor as firms have little control over the prices of raw materials or labor. The other options - product differentiation, producing at a lower average total cost than competing firms, and hiring competent managers - are factors that a firm can control or influence to some extent.

A Firm Cannot Control All of the Factors That Allow