Activities of consumers and firms:
A) have benefits but not costs.
B) have costs but not benefits.
C) have both costs and benefits.
D) are too complex to be analyzed with economic theory.

Question

Quizplus · Accepted Answer

Both consumers and firms engage in activities that have costs and benefits. Consumers weigh the benefits they receive from a product or service against the price they have to pay for it, and firms consider the cost of production and market competition when making decisions about what products to produce and at what price. Economic theory analyzes these trade-offs and helps to explain how consumers and firms behave in the marketplace.

Activities of Consumers and Firms