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Vinvika [58]
3 years ago
12

When a firm decides on the right mix of capital and labor to use, which of the three basic economic questions does it answer? Ch

oose 1 answer:
(Choice A) A Where to produce goods and services?
(Choice B) B How to produce goods and services?
(Choice C) C When to produce goods and services?
(Choice D) D What to produce?
(Choice E) E To whom do these goods and services go?
Social Studies
1 answer:
PilotLPTM [1.2K]3 years ago
5 0

Answer:

(Choice B) B How to produce goods and services?

Explanation:

The question "How to produce goods and services" addresses directly the problem of the factors or production: capital and labor.

Before producing anything, the firm must decide how to produce it. In other words, it must decide how much labor to use (how many workers it wil hire), and how much capital to use (how many investments in things such as machinery, equipment, and so on).

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