ECONOMICS
OPPORTUNITY COST
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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A person / group of people that share their income.
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An organization that produces goods / services for sale.
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The way total income is divided among owners of various factors of production.
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Cost that’s already been incurred & can’t be recovered.
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Detailed explanation-1: -A firm is defined as any organization of individuals that purchases factors of production (labor, capital, and raw materials) in order to produce goods and services that are sold to consumers, governments, or other firms. The theory of the firm assumes that the firm’s primary objective is to maximize profits.
Detailed explanation-2: -Business – An individual, partnership, or corporation engaged in the production and/or sale of goods and services for profit. A commercial enterprise engaged in one or more of the stages of production and distribution through which goods and services are finally sold in the market.
Detailed explanation-3: -A manufacturer is any business that produces finished goods from raw materials. They sell these goods to consumers, wholesalers, distributors, retailers, and other manufacturers wanting to create more complex items.
Detailed explanation-4: -A firm is a private economic entity that owns some capital and uses it to produce goods or services to then offer them in the market.
Detailed explanation-5: -Firms produce and sell goods and services to households in the market for goods and services (or product market).