Which of the following is not an example of an economic trade-off that a firm has to make?
A)Whether it is cheaper to produce with more machines or with more workers.
B)Whether it is cheaper to outsource the production of a good or service.
C)Whether or not consumers will buy its products.
D)Whether it should produce more of its product.

Question

Quizplus · Accepted Answer

The decision of whether or not consumers will buy a firm's products is not an economic trade-off that the firm has control over or can actively choose to make. It is based on market demand and consumer behavior, which the firm can influence but not entirely control. The other options all involve choices that the firm can make in order to optimize production and profits.

Which of the Following Is Not an Example of an Economic